The bill contains the following provisions for wine:
- It expands tax credits for all wineries.
- The old system would be replaced by a new tiered credit system for wine produced domestically:
$1.00 credit for the first 30,000 wine gallons produced
$0.90 credit for the next 100,000 wine gallons produced (30,001 to 130,000)
$0.535 for the next 620,000 wine gallons produced (130,001 to 750,000)
All wine produced over 750,000 gallons will be taxed at the regular rate
- Removes the existing prohibition against claiming the credit for naturally sparkling wines
- Expands the alcohol threshold for table wine from 14 percent to 16 percent for the lowest tax rate
- Increases carbonation tolerance levels for low alcohol wines
Source: WineAmerica, October 2017