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Craft distilleries exemption would benefit ag

A bill moving through the Michigan legislature could encourage distilleries to source more Michigan grain.

Passed last month by the Michigan Senate, Bill 349 provides a 17 percent discount on state taxes to small distilleries. The Senate’s analysis found it would cause a $9.4 million loss in revenue for the state’s Liquor Control Commission and increased costs for the Department of Agriculture but would benefit craft distillers and farmers.

In- and out-of-state small distilleries sourcing at least 40 percent of Michigan grains, which also includes fruit, potatoes, sugarbeets and honey, would be eligible for the exemption.

The bill has been referred to committee in the Michigan House.