Alcoholic beverage production credit
The beer production credit has been expanded and is now called the alcoholic beverage production credit. For tax years beginning on or after January 1, 2016, the credit is allowed for the production of cider, wine and liquor, in addition to beer.
You're entitled to this refundable credit if you or your business:
- is a registered distributor under Article 18 of the Tax Law (taxes on alcoholic beverages); and
- produced in New York State during the tax year:
• 60,000,000 or fewer gallons of beer
• 60,000,000 or fewer gallons of cider
• 20,000,000 or fewer gallons of wine
• 800,000 or fewer gallons of liquor
Note: For tax years beginning before January 1, 2016, the credit is only available to a registered distributor who produced 60,000,000 or fewer gallons of beer in New York State during the tax year.
How much is the credit?
- the credit is equal to 14 cents per gallon for the first 500,000 gallons of beer, cider, wine or liquor produced in New York State in a tax year, plus
- 4.5 cents per gallon for each additional gallon over 500,000 (up to 15,000,000 additional gallons for beer, cider and wine and up to 300,000 additional gallons for liquor) produced in New York State in the same tax year.
Taxpayers must prove entitlement to tax credits. During the course of an audit, you may be required to provide documentation to substantiate entitlement based on the specific facts of your tax credit claim. See Alcoholic beverage production credit recordkeeping requirements for more information on the recordkeeping requirements for this credit.
For additional information, see:
- Form CT-636, Alcoholic Beverage Production Credit, and its instructions, Form CT-636-I (for corporations); or
- Form IT-636, Alcoholic Beverage Production Credit, and its instructions, Form IT-636-I (for all others).