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Pennsylvania Budget Includes Renewed Tax Credit for Brewers

Posted by Andrew Desiderio on Tue, Jul 19, 2016

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brewer_emblem-red_copy.pngThere’s great news for Pennsylvania’s craft brewers – the new state budget includes a very helpful tax credit especially for them.

The malt beverage tax credit provides an annual $200,000 maximum tax credit for qualifying capital expenditures.

The credit was previously available for 35 years in Pennsylvania, from 1974 through 2008. Pennsylvania’s craft brewers have fought hard since to renew it, which finally happened with last week’s budget approval.The credit is available to all Pennsylvania-based brewers, according to Dan LaBert, Executive Director of the Brewers of Pennsylvania. The credit can be used to purchase just about any equipment or machinery used in brewing, according to credit proponent state Sen. Richard Alloway.

“Pennsylvania’s small breweries are a significant contributor to our state and local economy, and supporting this tax credit will play an important role in helping this industry thrive and grow,” he said in a press release.

READ MORE: 5 Tax Tips Every Beer Brewer Should Consider for Increased Cash Flow

Lehigh Valley Manufacturers' Guide for GrowthThe tax credit takes effect in 2017. With fourth-quarter tax planning coming up quickly, now is a great time to meet with your accountant to discuss how the new credit could save you on taxes starting next year.

The new state credit also can be easily coupled with federal tax depreciation rules. Both Section 179 and Bonus Depreciation can be used for equipment purchases, with Section 179 currently having a $500,000 limit.

Both depreciation allocations can be used for brewery equipment purchased in 2016.

READ MORE: Tax Tips for Manufacturers Seeking Increased Cash Flow

If you’re interested in learning more about how your brewery could save taxes on your equipment purchases, contact me at adesiderio@concannonmiller.com or 610-433-5501.

Topics: Manufacturing, Brewers

Concannon Miller’s unique, holistic and intimate approach to financial health sets us apart from smaller CPA firms with more limited resources as well as mega firms where mid-sized clients struggle for attention. Contact us here to talk about improving your business.

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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