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Welch Holds Roundtable with Distillery Industry Leaders

Press Release

Location: Middlebury, VT

Rep. Peter Welch today convened a meeting of Vermont's distillery industry leaders to discuss the opportunities and challenges facing this growing sector of Vermont's economy. At the meeting, he announced his support for bipartisan legislation to provide tax incentives for Vermont's distilleries.

"Vermont's distilling industry exemplifies Vermont's entrepreneurial culture. These vital small businesses are creating good, local jobs all over the state," Congressman Welch said. "I am happy to support this legislation which will give distillers a boost so they can continue to innovate, expand and succeed."

Under current law in the distilled spirits industry, 54 percent of an average distiller's revenues go to taxes and fees. The Distillery Innovation and Excise Tax Reform Act (HR. 2520), would bring distillers on par with the tax rates enjoyed today by brewers and vintners.

The bill would reduce the current federal excise tax from the current $13.50 per proof gallon to $2.70 on the first 100,000 proof gallons produced by a distillery. Any gallon produced over the 100,000 threshold would be taxed at $9.00.

"A lower federal excise tax allows distillers to continue to strengthen the Vermont brand by introducing more high-quality products and marketing them in Vermont and throughout the United States," Jeremy Elliott, Co-owner of Smugglers' Notch Distillery and President of the Vermont Distilled Spirits Council, said. "This positive exposure and association benefits all Vermont-made products. A big thanks to Rep. Welch for his support on this effort."

Welch was joined today at the roundtable by Jeremy Elliot, Owner of Smugglers' Notch Distillery and President of the Vermont Distilled Spirits Council; Sivan Cotel and Sas Stewart, Co-Owners of Stonecutter Spirits; Leo Gibson of Whistlepig Whiskey; Harold Faircloth and Tim Danahy, Owners of Green Mountain Distillers; and Mimi Buttenheim, President of Mad River Distillers, among others.

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