In 1972 the N.C. Legislature passed a preferential state excise tax law designed to foster the establishment of a wine industry in North Carolina. Wines produced from 51% or more native fruits and berries were taxed at five cents per gallon as opposed to 60 cents per gallon for all other wines.
After this incentive wineries opened all over the state including:
- Duplin Wine Cellars in Rose Hill in 1976 producing wines based upon the state's native muscadines
- Biltmore Estate Winery in Asheville in 1978 with its wines based upon traditional European-style vinifera grapes
- Germanton Vineyard and Winery in 1981 with wines made from French-American hybrids.
Unfortunately, the state lost its preferential tax rate in 1985 following the U.S. Supreme Court's decision in the Bacchus Case which declared such laws to be a violation of the freedom of commerce clause of the U.S. Constitution.
In 1986 the N.C. Grape Growers Association led an effort to sponsor legislation to create the North Carolina Grape Growers Council. SB994 was introduced and ratified in 1986 to create the 11-member council. The council was charged with stimulating the growth of the state's wine and grape industry by sponsoring research, education and promotional efforts. In 2005, the council moved from the Department of Agriculture to the Department of Commerce under the Division of Tourism. With the state's growing wine and grape industries, the N.C. Grape Growers Council became the N.C. Wine & Grape Council in 2006.
As a result of the council’s work, wineries and fresh grape producers report increased demand each year. Growth in vinifera and French-American hybrid acreage is expected to continue in the piedmont and mountains as public inquiries about winegrape production continue to increase.
Learn about the Wineries in North Carolina.
Learn about Grape Growing in North Carolina.