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Brewers Can Now Apply for Pennsylvania’s Malt Beverage Tax Credit

Posted by Andrew Desiderio on Thu, Feb 22, 2018

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brewer_emblem-red_copy.pngPennsylvania is now accepting applications for its renewed Malt Beverage Tax Credit for brewers.

Applications must be filed by April 1. The credit allows brewers to count qualifying capital expenditures against their state malt beverage excise tax liability.

The capital expenditures include equipment or machinery used in brewing. The maximum benefit is $200,000 a year, though any unused credit can be carried forward.

READ MORE: New Federal Tax Law Cuts Taxes for Most Brewers, Vintners & Distillers

The renewed credit went into effect July 1, 2017, meaning any equipment placed into service after that date through the end of 2017 qualifies. Going forward, the credit is in effect for the full year.

More information and the application can be found on the state’s website. We can assist you with any questions you have on it. Contact us for more information.

For brewers that purchased new equipment in 2017, don’t forget to take advantage of Section 179 and Bonus Depreciation, federal tax provisions that allow for accelerated depreciation on equipment. If you bought any new equipment between September 27, 2017 and the end of the year, you can use the new 100% first-year Bonus Depreciation that’s part of federal tax reform.

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Topics: Business tax planning, Manufacturing, Brewers

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This communication is designed to provide accurate and authoritative information in regard to the subject matter covered at the time it was published. However, the general information herein is not intended to be nor should it be treated as tax, legal, or accounting advice. Additional issues could exist that would affect the tax treatment of a specific transaction and, therefore, taxpayers should seek advice from an independent tax advisor based on their particular circumstances before acting on any information presented. This information is not intended to be nor can it be used by any taxpayer for the purposes of avoiding tax penalties.

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