Source: POLITCO'S MORNING AGRICULTURE, 11/16/17

The GOP pledged to avoid carve-outs for special interests in its rewrite of the tax code, but beer and citrus fruits found their way in, reports Pro Ag's Catherine Boudreau. The revised tax plan Senate Finance Chairman Orrin Hatch unveiled Tuesday night includes tax breaks for the two industries that are nearly identical to already introduced legislation: the Craft Beverage Modernization and Tax Reform Act, S. 236, and the Emergency Citrus Disease Response Act, S. 71. 

Beer benefits. The Senate bill would lower the federal excise taxes imposed on domestic and imported barrels of beer for two years; for smaller craft brewers producing less than 2 million barrels each year, the levy would drop significantly, to $3.50 a barrel on the first 60,000 barrels; and for larger companies like MillerCoors and AB InBev, the levy would drop to $16 a barrel on the first 6 million barrels, and remain at $18 for any above that.

The industry groups supporting those provisions made a lobbying push on Capitol Hill, but Republican Sens. Rob Portman and Roy Blunt carried the effort across the finish line, said Jim McGreevy, president and CEO of the Beer Institute. Other backers include the Brewers Association, Distilled Spirits Council of the United States and Wine Institute.

"We think our bill is going to create jobs," McGreevy said, referring to the craft beverage legislation. He added that tax relief would help U.S. brewers and beer importers invest more into their businesses to meet consumers' growing demand for the malty beverage.

For citrus' sake. Growers of oranges, lemons, limes and other citrus fruit would get some relief if they need to replant diseased trees, such as those lost to citrus greening disease. The Senate tax bill would allow growers to immediately deduct replanting expenses, even if they raise capital from investors to help cover the cost (current law requires that growers foot the entire bill to qualify for the deduction).

In other tax news: Johnson is first GOP defection. Sen. Ron Johnson of Wisconsin on Wednesday said he couldn't support the new Senate tax plan because it would benefit corporations more than so-called pass-through entities - partnerships, LLCs, sole proprietorships and S corporations - which is how many farm operations are structured. Read the full take from the POLITICO's Seung Min Kim and Colin Wilhelm here. And for a handy breakdown of nine key differences between the Senate and House tax bills, read this from Pro Tax's Bernie Becker.