Senator McConnell Introduces Legislation to Support Jobs in Kentucky's Bourbon Industry

Press Release

U.S. Senate Republican Leader Mitch McConnell has introduced legislation which corrects a provision in the tax code to ensure that Kentucky's bourbon producers are no longer at a disadvantage with their global competitors.

"The Aged Distilled Spirits Competitiveness Act," cosponsored by Senator Rand Paul, would level the playing field for bourbon producers by allowing deduction of interest expense related to bourbon inventories in the year it is paid, thereby improving their competitive position. Currently, bourbon producers are required to wait until after the lengthy aging process -- generally 4 to 8 years, although sometimes as long as 23 years -- before deducting expenses related to creating their inventory.

"Kentucky bourbon is a vital part of the Commonwealth's heritage, and is responsibly enjoyed by adults all over the world," Senator McConnell said. "Over 9,000 jobs in Kentucky are attributed to the bourbon industry and it brings in billions of dollars to our state's economy. This legislation will not only put Kentucky's bourbon industry on a level playing field with its competitors, but it is a pro-growth measure that will also help provide a boost to our economy and help create jobs in Kentucky."

Eric Gregory, President of Kentucky Distillers' Association, said, "Kentucky's signature Bourbon industry is experiencing a global resurgence, but our legendary distilleries are hindered by outdated tax policies that restrict growth and further investment in the Bluegrass. Resolving this critical issue is a top priority for our members and will create a level playing field so Bourbon can better compete abroad. We thank and applaud Senator McConnell for his continued support and leadership, and we look forward to working with him to protect our iconic brands and to promote one of the Commonwealth's most valuable and recognizable exports."

Mark Brown, President and CEO of Buffalo Trace Distillery, added, "on behalf of the over 1,000 employees at Sazerac's three Kentucky distilleries -- Buffalo Trace, Barton 1792 and Glenmore, I want to thank Senator McConnell for his filing of this bill which will lift a burden that impacts only manufacturers of bourbon. Tearing down these discriminatory barriers will allow all bourbon distillers to reinvest in their facilities and their employees. This will lead to job growth and happily, the increase in production of Kentucky's native spirit which is in strong demand both here and abroad. We commend Senator McConnell for his support of the bourbon industry and look forward to working with him and the rest of Kentucky's federal delegation to pass this important measure."

The legislation has been referred to the Senate Finance Committee, and Senator McConnell is encouraging the committee to review the legislation when Congress reconvenes.

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