FCD in the News

ABC Channel 7

January 10, 2020

Interview discussing the tax implications impact on the micro distillery industry...

FALLS CHURCH, Va. (ABC7) — Falls Church Distillers is a family owned business relatively new to Northern Virginia. Owner Michael Paluzzi’s team makes everything from vodka to whiskey to gin. Soon after opening a few years ago his industry landed a major windfall.

“It was this amazing reduction,” says Paluzzi.

Congress passed a nationwide tax break on distilled spirits. The tax went from $13.50 per proof gallon to $2.70 per proof gallon.

Paluzzi adds, “That is a lot. That’s like, in any given bottle, anywhere from 20 to 30 percent gross margin out of your product. That’s a dollar, 2 dollars profit when you are only making 3 to 4 dollars a bottle.”

Paluzzi says that tax cut spurred expansion in his and many other distilleries across the country. “I doubled my workforce based on that alone. I expanded to three new states based on that alone,” says Paluzzi.

The tax break of $2.70/proof gallon was set to return to $13.50 but Congress delayed the increase for another year. More on @ABC7News at 11.

But there was a catch. While the tax reduction infused success it also recently ran out. So, Paluzzi and other distillery owners lobbied Congress.

“Owners from all over the country came and we stormed the hill a couple months ago. Yeah, it was fun. I’d never done anything like that before,” says Paluzzi.

They succeeded. Congress extended the tax break for another year. A reprieve for Michael Paluzzi who works in a business that rewards patience.

Paluzzi says with a laugh, “Just think about the people that put a barrel of whiskey away and wait 20 years.”

He laughs because for now he can’t afford to do that. His hope is that his tax break becomes permanent so one day he can offer customers a bourbon that’s been aged by a business that to thrive must invest in the future.

Storming The Hill

July 24, 2019

NEWS RELEASE

  

For Immediate Release:                                                                       Distillery Contact: M Paluzzi

July 26, 2019                                                                                        

 

Falls Church Distillers llc Goes to Capitol Hill to Urge Support for Spirits Tax Cut Bill

 

--Meets with Rep. Don Beyer’s office to discuss issues impacting small craft distillers--

 

Washington, DC – Michael E Paluzzi of Fall Church Distillers was one of more than 150 craft distillers from around the country who gathered in Washington, D.C. from July 22 through July 24 for the distilled spirits industry’s 10thAnnual Public Policy Conference, co-hosted by the Distilled Spirits Council of the United States and the American Craft Spirits Association (ACSA).
 

The conference featured a series of legislative and regulatory sessions on key federal and state issues impacting the distilling industry.  As part of the conference, Michael E Paluzzi participated in congressional visits with representatives of Senators Warner and Kaine and the Congressional offices of Beyer, Spanberger, Griffith, McEachin, Riggleman, Wexton, Connolly, Scott and Cline to urge support for the Craft Beverage Modernization and Tax Reform Act (H.R. 1175/S. 362). This critical legislation makes permanent a federal excise tax cut on distilled spirits and was enacted in 2017. Without Congressional approval, the tax cut for distillers will expire on December 31, 2019.  

 

Paluzzi also discussed the harm that retaliatory tariffs on spirits exports are having on American distillers, large and small, and the importance of (his/her) distillery to the economic development of the surrounding community.  

 

“Meeting with Rep. Beyer’s Legislative Correspondent was a highlight of the conference,” said Paluzzi.  “I expressed to Ms. Rubinger the importance of making the tax cut on distilled spirits permanent.  The reduced tax rate has had a major impact on my distillery enabling me to hire more staff and invest in more product stock.  It was impactful to share with Rep Beyer’s office how this bill will continue to help my small distillery grow, as well as the devastating impact on my business if it does not pass.”

 

Conference speakers included: Senator Ron Wyden (D-OR), co-sponsor of the Craft Beverage Modernization and Tax Reform Act (S.362); Senator Rob Portman (R-OH); Senator Jon Tester (D-MT); Alcohol Tax and Trade Bureau officials; and Carl Hulse, New York Times chief Washington correspondent.

 

“This is a historic moment for our industry as more than 150 distillers from 33 states descend on Washington to rally further support for this critical, urgent legislation,” said Margie A.S. Lehrman, CEO, American Craft Spirits Association. “Without permanent and immediate Federal Excise Tax reform, the stability of this vibrant industry, and the industries that surround us – agriculture, tourism and the broader hospitality industry – are bound to be paralyzed."

 

“These distillers delivered a unified message to legislative leaders on Capitol Hill at a critical time,” said Chris Swonger, President and CEO of the Distilled Spirits Council of the United States, the national trade association representing producers of distilled spirits sold in the United States.  “The federal tax cut on spirits is set to expire at the end of the year and the negative impacts of the retaliatory tariffs against U.S. spirits products are mounting.”

 

Distillers who attended the conference also had opportunities to showcase their craft spirits at a “Meet America’s Distillers” reception on Capitol Hill for lawmakers and a “Spirits of America” reception for journalists at the National Press Club.  

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442 S. Washington Street, Ste A

Falls Church, VA 22046

703.858.9186

Holiday Hours - Closed Dec 23, 2019-Jan 2, 2020

Mon & Tue - Closed to Public; Private Parties Only

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