WASHINGTON D.C. (WEHT) – US Senate Majority Leader Mitch McConnel (R-Ky.) and Senator Rand Paul (R-Ky.) introduced legislation to make a permanent provision in the tax code aimed at helping bourbon producers.
The bill would allow them to deduct interest expenses related to bourbon inventories in the year it’s paid.
This is aimed at protecting the competitive position of Kentucky’s bourbon industry.
Before this was signed into law as part of the 2017 Tax Cuts and Jobs Act, interest expenses were not deducted until the bourbon was bottled and sold, which could be anywhere from two to 20 years after aging.
The current law expires on December 31, 2019.
“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,” said Senator McConnell. “The AGED Spirits Act” is a pro-growth measure that will maintain a fair footing between Kentucky’s bourbon industry and its competitors abroad. This bill would benefit thousands of hard-working Kentuckians who have contributed to one of the Commonwealth’s signature industries and who have helped make Kentucky the ‘Bourbon Capital of the World.'”
“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,” said Senator Paul.
Kentucky produces 95% of the world’s bourbon supply, contributing $8.6 billion to Kentucky’s economy each year according to a recent economic study.
This story was originally published on July 25, 2019