(Wines&Vines) - Greater deductions and lower taxes are what wineries across the country will enjoy if a bill Sen. Ron Wyden of Oregon introduced in the Senate this month becomes law.

Wyden’s comprehensive craft beverage tax reform bill—known officially as the Craft Beverage Reform and Modernization Act of 2015—will also benefit craft breweries and distilleries, but wine producers in Wyden’s home state of Oregon, who had a hand in developing the bill, are particularly cheered.

Key provisions for wineries include allowing producers to claim production expenses for the year in which they’re incurred, rather than capitalizing them while the wines age in preparation for release and sale. Wyden’s bill also proposes modifying tax credit provisions to benefit wineries by as much as $120,000 a year.

“One of the biggest things is the proposal to allow wineries to expense production costs,” said Bill Sweat, principal of Winderlea Vineyard and Winery in Dundee, Ore., and a director of the Oregon Winegrowers Association, which supported Wyden’s development of the bill. “Right now, when I produce a case of wine, all the costs that go into that become costs of goods sold, so they come out of my (profit and loss), and they’re not recognized until I sell that bottle of wine, which could be two years later.”

Winderlea, for example, produces approximately 7,500 cases per year, but typically sells between 3,500 and 4,000 cases per year. This leaves the winery unable to claim expenses for nearly half of its production, squeezing cash flow. This also means that developing a library of past vintages an expensive prospect, as the cost of the library wines can’t be claimed until the wines are deemed to be sold or otherwise no longer part of the winery’s inventory.