e rise of whiskey distillers in the West, U.S. Sen. John Walsh, D-Mont., has formed a caucus to cut through federal red tape that corks small production.The Senate Craft Distillers Caucus held a forum at Headframe Spirits, 21 S. Montana St., on Monday to discuss the issues craft distillers face, plus explore what Congress can do to strengthen the growing industry.
“These new businesses are creating good jobs by bringing more high-quality, made-in-Montana products to market,’’ Walsh said.
Since 2005, 16 distilleries have opened across the state and contribute $11.4 million to Montana’s economy, said Dave Kuntz, Walsh spokesman. The 2005 Montana Legislature made micro distilleries legal in the state for the first time since Prohibition.
The caucus will help provide these businesses with the resources they need to succeed.
High on the list is potentially reducing the federal excise tax that distillery owners like John and Courtney McKee pay. They pay $2.80 per bottle in federal excise tax, they said.
“Right now, that tax is huge,” added Courtney McKee, adding that the tax reduction would add jobs and “assure that other distilleries have more cash in their pockets to get started.”
The McKees want to hire more employees as they expand.
The listening session is the start as Walsh decides what other action to take at a federal level.
Navigating federal distillery laws has been difficult for small producers, which have to pay intake, storage and outtake fees that are geared toward high volume distillers.
