Pennsylvania 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.
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.
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.