U.S. Sen. Mitch McConnell, R-Louisville, on Friday announced that he has filed tax legislation to let Kentucky bourbon producers deduct interest while whiskey ages.
Co-sponsored by Sen. Rand Paul, R-Bowling Green, the Aged Distilled Spirits Competitiveness Act also has been filed in the House by Rep. Andy Barr, R-Lexington. The Senate version has been referred to the Finance Committee for review.
Currently, bourbon producers must wait until after the lengthy aging process — generally four to eight years, although sometimes as long as 23 years — before deducting expenses related to creating inventory, rather than deducting in the year the expenses were incurred.
Mark Brown, president and CEO of Buffalo Trace Distillery in Frankfort, said the change will help Kentucky distilleries, include parent company Sazerac's three in Kentucky, grow and create more jobs.
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"Tearing down these discriminatory barriers will allow all bourbon distillers to reinvest in their facilities and their employees," Brown said in a statement. "This will lead to job growth and happily, the increase in production of Kentucky's native spirit which is in strong demand both here and abroad."