This bill modifies the tax treatment of certain alcoholic beverages to

• exclude the aging period from the production period for beer, wine, or distilled spirits for purposes of determining whether a taxpayer can expense, rather than capitalize, interest costs paid or incurred during the production period;
• reduce excise tax rates on beer and distilled spirits;
• permit the transfer of beer between bonded facilities without payment of tax;
• increase the amount of the small wine producer tax credit and expand the categories of producers covered by such credit;
• allow an adjustment to the producer credit for hard cider; and
• modify the alcohol content limitations that apply to certain wines for tax purposes.

The Department of the Treasury must amend applicable regulations with respect to the use of wholesome products suitable for human consumption in the production of fermented beverages.

The bill also increases funding for the Alcohol and Tobacco Tax and Trade Bureau.