The entire Kentucky delegation to the U.S. House of Representatives supports a bill to change the federal tax code to benefit the commonwealth’s bourbon industry.
Lawmakers contend there is inequality in the Internal Revenue Service because bourbon is aged and must be carried in storage for extended periods compared to other distilled spirits. Introduced by Congressmen Geoff Davis and Ben Chandler earlier this year, the Aged Distilled Spirits Competitiveness Act of 2011 seeks to exempt the natural aging process in the production for distilled spirits. It would allow distillers to deduct the interest expense to pay for their inventory as those costs are incurred.
“Bourbon is a signature Kentucky product throughout the nation and around the world. The bourbon industry supports thousands of Kentucky jobs and this bill is an important step in leveling the playing field in the growing distilled spirits industry,” Davis said in a statement.
It is estimated the industry is responsible for 10,000 jobs in the state and ships $1.5 billion in bourbon each year.
The bill is co-sponsored by fellow Kentucky Congress members Ed Whitfield, Brett Guthrie, John Yarmuth and Hal Rogers, and was recently assigned to the Ways and Means Committee for consideration.