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Fainer Consulting
4:30 PM

Craft Beverage Modernization and Tax Reform

 The Craft Beverage Modernization and Tax Reform Act of 2017 was signed into law on December 22nd.

Effective January 1, 2018, this new law impacts wineries, breweries, and distilleries.  This article applies only to wineries.

When will this change impact me?

For TTB quarterly filers, this immediately impacts your  Q1 2018 Report of Wine Premises Operations and Q1 Excise Tax return.  For annual filers, this will impact your 2018 Report of Wine Premises Operations and Excise tax return filed in January 2019.

Summary of Major Changes:

1. The lowest tax class for still wine has been broadened to include wines up to 16.04% alcohol by volume. (formerly 14.04%).  Make sure to submit your Reports on the new form TTB F 5120.17TEMP. This revised form is for 2018 and 2019 Reports only, and reflects the new tax classifications.

 

2. The previous small producer's tax credit has been repealed.  A new tax credit is in place that applies to ALL wineries and cideries. The tax credit may be applied to all still and sparkling wines that have been produced by the winery. *Note, purchased wines are no longer eligible for a tax credit.

 

3. The tax credit for wine has increased by 10 cents (from 90 cents to one (1) dollar) for the first 30,000 gallons taxably removed from bond.  

 

4.The next 100K gallons of wine are eligible for a tax credit of 90 cents.  There is also now a reduced tax credit of 53.5 cents for any additional gallons taxably removed up to 750K gallons. 

 

Go to: https://www.ttb.gov/alcohol/craft-beverage-modernization-and-tax-reform.shtml 

for more information or contact Fainer Consulting.

 


2 Comments
Fainer Consulting
1:12 PM

The Los Olivos District AVA in Santa Barbara County has been established

Los Olivos vineyard and hills
Effective February 22, 2016, the TTB has approved the use of the "Los Olivos District" American Viticultural Area (AVA). According to the new ruling published 1/22/2016 (https://www.gpo.gov/fdsys/pkg/FR-2016-01-21/pdf/2016-01155.pdf), the TTB has determined that the Los Olivos District AVA will remain part of both the established Santa Ynez Valley AVA and the established Central Coast AVA. There are approximately 12 bonded wineries and 47 commercially producing vineyards in the newly established AVA. For more information on this new ruling or labeling guidance, please contact Fainer Consulting.

1 Comments
Fainer Consulting
12:15 PM

New Beer Registration Requirements

Attention Beer Brewers: Effective January 1st, the CA Dept. of ABC will implement new beer registration procedures. Please refer to the recent ABC advisory at: ABC Advisory Beer Brand Registration Contact Fainer Consulting for more information or assistance. 805.964.8000

13 Comments
Fainer Consulting
12:27 AM

02/23/2015 – TTB Issues New Guidance on Annual Filing Requirements for Wineries

This week, the TTB clarified the criteria for filing the Excise Tax return and the Report of Wine Premises Operations on an annual frequency. Read about it here. Read More

1 Comments
Fainer Consulting
5:32 PM

TTB Final Rule for "Small Brewers" Takes Effect January 1, 2015

Aimed at what the TTB terms "small brewers", this ruling actually impacts approximately 91% of all permitted brewers. Read More

8 Comments
Fainer Consulting
7:25 PM

Napa Wine Businesses Destroyed By Recent Quake May Relocate Operations

Licensees whose licensed premises have been destroyed as a result of a fire or any "Act of God", may carry on his/her business for a temporary period of time (180 days for on-sale; 6 months for off-sale) at an nearby location (within 500 feet) while the premises are being repaired or rebuilt. Read More