Rep. Inman offered the following concurrent resolution:
House Concurrent Resolution No. 29.
A concurrent resolution to urge the United States Congress to expand the small wine producer tax credit and reduce the federal excise tax on wine.
Whereas, The wine industry in Michigan is a significant economic contributor. Each year, the state’s wine industry contributes more than $300 million in total economic value to Michigan’s economy and accounts for more than 3,000 jobs across the state. In 2015, Michigan’s wineries produced 2.3 million gallons of wine on 13,700 acres of vineyards, making Michigan the 8th largest producer of wine by gallon; and
Whereas, The wine industry in the United States is an integral component of our nation’s economy. It is estimated that the industry is responsible for $5 billion in economic output, which provides job opportunities for over 50,000 people. American wineries account for 8 percent of the world’s wine production, and in 2014, American wineries shipped 478 million cases around the world; and
Whereas, The burden of federal excise taxes on wine handicaps the growth of the industry. Each year, the federal government receives billions in tax revenue from the wine industry, and this tax encumbers the industry’s ability to reach its fullest potential. Additionally, the burden of this tax undermines the effort of wineries to grow and strengthen their business by capturing capital that otherwise could be strategically invested in their operation; and
Whereas, A reduction in the excise tax on wine is needed in the United States. Enacting legislation like the Wine Excise Tax Modernization Act of 2016 would level the playing field for wineries and encourage growth and innovation. Through common sense changes to the tax code, including the expansion of the tax credit for small- and mid-sized producers and the elimination of the excise tax on champagne and sparkling wine, industry growth can be accelerated. These measures would encourage growth in Michigan’s wine industry and the whole of Michigan’s economy; now, therefore, be it
Resolved by the House of Representatives (the Senate concurring), That we urge the United States Congress to expand the small wine producer tax credit and reduce the federal excise tax on wine; and be it further
Resolved, That copies of this resolution be transmitted to the President of the United States Senate, the Speaker of the United States House of Representatives, members of the Congressional Wine Caucus, and the members of the Michigan congressional delegation.