Barr Fights for Kentucky Bourbon Jobs

Press Release

Congressman Andy Barr (KY-6) today introduced the Aged Distilled Spirits Competitiveness Act of 2015. The aging process is essential to producing high quality Kentucky bourbon. However, the U.S. tax code discriminates against this process by not allowing distillers to deduct inventory expenses until the final product is sold, which can take from two to more than 20 years. Distillers of other spirits such as vodka are able to deduct these expenses right away because their products are not aged.

Congressman Barr's bill would allow bourbon, whisky, and other distillers of aged spirits to deduct interest expenses of their inventories as they occur. This change would make the tax treatment of bourbon comparable to other distilled spirits, and improve its competitiveness in the growing international market.

"Kentucky's bourbon industry is thriving -- providing much needed jobs, investment, and economic growth in the Commonwealth," said Congressman Barr. "As the domestic and international markets for distilled spirits grow, it is important that we reform our outdated and complex tax code to eliminate the practice of putting Kentucky products at a competitive disadvantage. This bill is a commonsense fix which would treat bourbon and other aged spirits fairly for tax purposes, helping support jobs for Kentucky families and our local economy."

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