Federal tax benefits for small brewers, distillers, and wineries.

What is CBMA?

The Craft Beverage Modernization Act (CBMA) introduced significant tax benefits for US importers of beer, wine, and distilled spirits. Originally established as temporary modification to the Internal Revenue Code under the Tax Cuts and Jobs Act of 2017, the Taxpayer Certainty and Disaster Tax Act of 2020 made permanent most of the CBMA provisions established in 2017. The permanent provisions under the CBMA include:

  • Reduced tax rates on beer and distilled spirits, and certain tax credits for wine.
  • Adjusted the alcohol content for certain still wine tax classes from 14% to 16% alcohol by volume effectively reducing the tax rate for these wines.
  • Lower tax rates for certain meads and low alcohol wines.

The Consolidated Appropriations Act of 2021 transferred the administration of the CBMA program from Customs and Border Protection (CBP) to the Department of Treasury effective January 1, 2023. The CBMA is currently administered by the Alcohol and Tobacco Tax and Trade Bureau (TTB). In addition to the transfer of administration in 2023, the way in which importers take advantage of the tax benefits also changed. Beginning in 2023, importers are liable for remittance of full tax rates, net of certain tax credits, to CBP at time of entry. Refunds for CBMA reduced tax rates are subsequently claimed from TTB no earlier than the quarter following import.

How do I get started?

Contact us today and let our team help you navigate the complex compliance requirements of the CBMA. We are here to provide expert guidance and services designed to alleviate the administrative complexities associated with CBMA claims. Quarterly refund processing via myTTB.

Services We Offer

CBMA claim process management

Time of Entry Filing

Post Summary Corrections (PSC)

Protests on entries already on file with CUSTOMS

Important Deadlines

Annual allocations must be entered by December 31st of the year in which goods were imported. Allocations not entered prior to the deadline will forfeit CBMA reduced tax rates for the year.

Did you know?

Allocations can be entered as early as October in the year prior to import. Don’t delay. Seize the opportunity to cash in on tax refunds as soon as possible. Foreign producers can increase an importer’s allocation throughout the year until annual quantity limitations are reached.

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