A New Bill in Congress Would Give Tax Relief to Craft Distillers Using Domestic Ingredients. It Lands the Same Week a Kentucky Distillery Failed.

Bipartisan legislation establishing a federal excise tax credit for small distillers using domestic agricultural ingredients has been introduced in the US House of Representatives. The Supporting Producers Through Incentives from Rural Ingredients and Tax Relief Act – the SPIRIT Act, H.R. 9407 – was introduced on 29 June 2026 by Congressional Craft Spirits Caucus co-chair Representative Jeff Hurd of Colorado, with Representative Jill Tokuda of Hawaii as co-sponsor.