ABL Dispatch — The Latest Industry News from Washington BY JOHN BODNOVICH, ABL EXECUTIVE DIRECTOR
It has been a busy first few months of 2021 in Washington, D.C., and throughout the country as bar, tavern and package store owners have been flexing their grassroots muscles in places like Madison. Congratulations to the TLW and your legislative leadership team for securing the passage of Assembly Bill 32, permitting the sale of cocktails to go, and the other important work the TLW is doing at the Capitol.
TLW President Weighs in on Perishable Food and Beverage Tax Credit Legislation In a recent interview with Politico, TLW President Chris Marsicano spoke out on the need for a one-time perishable food and beverage tax credit to help struggling bars, taverns, supper clubs and restaurants recoup some of their losses from pandemic-related closures. The tax credit is included in the Hospitality and Commerce Job Recovery Act of 2021. According to the Politico article: A provision in the legislation would offer a targeted tax credit for the kinds of bars, taverns and restaurants represented by the American Beverage Licensees (ABL), said the group’s executive director John Bodnovich. The tax break would cover 90% of the estimated $900 million in perishable food and beverage inventory losses from March 13 to Sept. 30, 2020, he said. “We’re not out of the woods yet and additional relief is certainly warranted,” Bodnovich said. “Every little bit helps.” Clear example: Chris Marsicano, owner of the Village Supper Club in Delavan, Wis., agreed. The 56-year-old family business received a shutdown order just hours before opening for dinner on St. Patrick’s Day last year, precipitating a long decline to come. His business was off 40% in 2020. The St. Patrick’s shutdown left Marsicano with 1,100 pounds of corned beef, 700 pounds of cabbage and 600
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“The tax break would cover 90% of the estimated $900 million in perishable food and beverage inventory losses from March 13 to Sept. 30, 2020.” — Politico
pounds of chicken. Some of the food was donated to homeless shelters and, though some beer companies took back their kegs, a lot of what he had on tap was also thrown away because of expiration dates … Not a silver bullet: He doesn’t expect the legislation to cure all that ails the hospitality industry, but said it would provide a helpful additional lifeline. Marsicano didn’t lay off any employees last year, some of whom have worked there for decades, but he cut some of their hours and didn’t make his normal 20-odd seasonal hires last summer. ABL is working with the Perishable Food and Beverage Coalition to support this bill.
Restaurant Revitalization Fund Congress approved the ABL-supported, $1.9 trillion American Rescue Plan, which President Joe Biden signed into law on March 11. Included in the bill is the Restaurant Revitalization Fund (RRF), which creates a $28.6 billion grant program for restaurants, bars and other on-premise businesses through the U.S. Small Business Administration (SBA). The following is a summary of the grant program as of today, with further modifications expected as the SBA implements the program. What is it? The RRF grant program provides $28.6 billion in cash grants to qualifying businesses that experienced revenue losses in 2020. The U.S. Department of the Treasury will allocate funds so that the SBA can administer the program. There are no details available from the SBA yet. www.tlw.org
