The Craft Beverage Modernization and Tax Reform Act of 2017 (CBMA) changes the Internal Revenue Code with respect to the tax treatment of certain alcoholic beverages.
Main provisions of the CBMA
- reduces tax rates and/or tax credits are applicable to importations of certain limited quantities of distilled spirits, beer or wine imported from each assigning entity (as described in the CBMA).
- allocates tax credits or reduced tax rates by the assigning entity to all importers may not exceed the quantities allowed by law.
Proof on the importer
As a result, for an importer to be eligible to receive a reduced tax rate or a tax credit, the importer must be able to substantiate that the assigning entity has assigned an allotment of its reduced tax rate or tax credits to the distilled spirits, beer, or wine imported by that importer.