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Fainer Consulting
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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 The previous small producer's tax credit has been repealed.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.