Local distillers in Michigan's Great Southwest concur with Michigan Senator Gary Peters that a proposed federal reduction in the excise tax on alcoholic spirits by small distilleries will mean more capital investment and more jobs for the local economy.
Peters visited Grand Rapids-based Long Road Distillers yesterday and cited the potential gains for the local economy under the proposed Distillery Excise Tax Reform Act, or DETRA. The legislation before the U.S. Congress would lower the excise tax from $13.50 per proof gallon significantly to $2.70 per proof gallon. A proof gallon is industry parlance for one gallon of alcoholic spirits at 50-percent alcohol-by-volume at 60-degrees (F). The legislation would allow that reduction on the first 100,000 such gallons produced in any year by a distillery.
Bill Welter of Journeyman Distillery in Three Oaks says Journeyman continues to make significant investments in growing their business. He tells me, "Any tax benefits would allow for us to hire more local people, expand our production process, and make further contributions to the Village of Three Oaks and the State of Michigan." He adds, "Any dollar saved with a tax cut is a dollar going back into the local economy."