McConnell, Paul offer bill to cement tax provision benefiting bourbon makers

McConnell, Paul offer bill to cement tax provision benefiting bourbon makers
© Greg Nash

Kentucky's two Republican senators offered a bill this week to permanently extend a provision in President TrumpDonald John TrumpFlorida GOP lawmaker says he's 'thinking' about impeachment Democrats introduce 'THUG Act' to block funding for G-7 at Trump resort Kurdish group PKK pens open letter rebuking Trump's comparison to ISIS MORE's tax-cut law that benefits bourbon makers.

Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellMcConnell: Trump's troop pull back in Syria a 'grave strategic mistake' Overnight Defense — Presented by Boeing — Trump insists Turkey wants cease-fire | Fighting continues in Syrian town | Pentagon chief headed to Mideast | Mattis responds to criticism from Trump TSA head rules himself out for top DHS job   MORE and Sen. Rand PaulRandal (Rand) Howard PaulOvernight Defense — Presented by Boeing — Pence says Turkey agrees to ceasefire | Senators vow to move forward with Turkey sanctions | Mulvaney walks back comments tying Ukraine aid to 2016 probe On The Money: Senate fails to override Trump veto over border emergency | Trump resort to host G-7 next year | Senators to push Turkey sanctions despite ceasefire | McConnell tees up funding votes Top Foreign Relations senators introduce Turkey sanctions bill MORE said their legislation, introduced Wednesday, will help bourbon producers create more jobs.

“The legislation I introduced today with Senator Paul would not only keep Kentucky’s bourbon industry on a level playing field with its competitors, but would also help create jobs and provide a boost to Kentucky’s economy,” McConnell said in a statement.

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The tax law Trump signed in December 2017 provided tax relief for brewers, distillers and winemakers, but that section of the law is set to expire at the end of 2019.

One portion of the tax relief for the alcohol industry allows bourbon makers to deduct interest expenses related to inventories in the year they are paid. McConnell and Paul's bill would make this change permanent.

A press release from the senators said that before the change was made, bourbon makers couldn't deduct their interest expenses until bourbon was bottled and sold, which could be years after aging.

“The Advancing Growth in the Economy through Distilled Spirits Act will preserve Kentucky’s signature Bourbon industry by boosting job creation and maintaining a level playing field between Bourbon and whiskey producers at home and their competitors abroad,” Paul said.