Jim Trezise – President – New York Wine & Grape Foundation CAPITAL NEWS: Happenings in Sacramento and Washington, D.C. Impacting the North Coast Wine Industry Time: 11:30am – 12:30pm Speakers: Jim Trezise – President – New York Wine & Grape Foundation Edgar “Pete” Downs - Acting President, Family Winemakers of California

The Business Climate for Wine in Washington Jim Trezise Executive Committee, Wineamerica

WineAmerica Grassroots Public Policy Advocacy 1020 16th St. NW, Suite 300 Washington, DC 20036 Phone: 202-223-5175 www.wineamerica.org

WineAmerica The national organization of American wineries has winery members from 41 states

WineAmerica members have broad legislative reach

WineAmerica Organization Membership Board of Directors and Executive Committee State and Regional Associations Advisory Council (SRAAC) Government Affairs Counsel: Meyers & Associates Staff: Tara Good, Director of Operations Michael Kaiser, Director of Public Affairs

WineAmerica Initiative Partners Family Winemakers of California Wine Institute State and Regional Wine Trade Associations Winegrape Growers of America National Grape & Wine Coalition FIVS Brewers Association Distilled Spirits Council of the United States MIC Coalition Many Others

The Business Climate for Wine in Washington Who knows?!

The New Political Landscape Donald Trump, President-elect Cabinet and Agency Changes (USDA, TTB, FDA, EPA, USTR, etc.) Program Changes (Trade Agreements, Research Funding, Market Access Programs, TTB Funding, etc.) Issues Impacts (Immigration Reform, Excise Tax Reform, etc.) Republican Senate Republican House of Representatives Republican Governors Majority Conservative Supreme Court Majority (eventually)

Key Issues and Outlooks Excise Tax Reform Immigration Reform Music Licensing Trade Policy USDA Funding (Research and Export) TTB Funding Genetically Modified Organisms Marijuana Laws And More…

WineAmerica Successes Small Producer Tax Credit (1991, major savings dependent on winery size) Repeal of Special Occupational Tax (2004, $500 to $1,000 annual savings depending on size) Repeal of Bond Requirement as of 1/1/2017 (up to $1,000 annual savings) Music Licensing Consent Decree by D.O.J. Country of Origin Labeling Repeal

Return on Investment

WineAmerica Top Priority Craft Beverage Modernization and Tax Reform Act 54 Senate Co-Sponsors 286 House Co-Sponsors Enormous Potential Savings for Wineries of All Sizes

Excise Tax Reform-the Basics Federal Excise Tax Rate is $1.07* Credit of $1.00 on first 30,000 gallons produced (effective tax rate 7 cents)* Credit of $.90 for 30,001 to 130,000 gallons produced (effective tax rate 17 cents)* Credit of $.535 for 130,001 to 750,000 gallons produced (effective tax rate 53.5 cents)* Increases table wine maximum alcohol threshold to 16% May apply to table wine or sparkling wine (to be specified by producer) *for table wine

Key to Success- grassroots public policy advocacy Craft Beverage Modernization and Tax Reform Act Sample Savings by Winery Size Gallons (Cases) Prod Current Taxes Proposed Taxes Total Savings WA Invest* 10,000 (4,206) $1,700 $700 up to $1,000 $100 (Minimum) 50,000 (21,030) $8,500 $5,500 $3,000 $420 100,000 (42,060) $17,000 $14,000 $3,000 $841 300,000 (126,182) $321,000 $110,050 $210,950 $2,524 1,000,000 (420,609) $1,070,000 $601,801 $469,198 $8,472 *Through Family Winemakers-WineAmerica Joint Membership Offer

Return on Investment

WineAmerica Membership Flyer

Special Partnership: Family Winemakers and WineAmerica Membership in Family Winemakers: 6 cents per case, $300 minimum Optional Joint Membership in WineAmerica: Additional 2 cents per case, $100 minimum Normal minimum for WineAmerica membership is $500

Jim Trezise, jimtrezise@nywgf.org, 585-394-3620 Thank you! Questions? Jim Trezise, jimtrezise@nywgf.org, 585-394-3620

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