The R&D or Research and Development Tax Credit is available to far more industries than you’d think, including manufacturing, construction and software development among many others. You don’t have to develop a new product to qualify; even improving processes can be a qualifying activity. The R&D Tax Credit is one of the most lucrative available as it’s a dollar-for-dollar reduction in tax liability.
Whether you’re looking to buy a brewery, sell a brewery, gift some ownership to a partner or successor, or are just plain curious, the question of value is of primary concern. Ask any valuator worth their salt and he or she will tell you, valuation is an art, not a science.
There is no black and white formula for determining what a brewery is worth. However, there are time tested and generally accepted methods within which one can work to derive a fair value.
Federal tax reform through the Tax Cuts and Jobs Act significantly expands bonus depreciation under Section 168(k) of the Internal Revenue Code for both regular tax and alternative minimum tax purposes. Now, the IRS has released proposed regulations that clarify the requirements that businesses must satisfy to claim bonus depreciation deductions.
Although the regs are only proposed at this point, the IRS will allow taxpayers to rely on them for property placed in service after September 27, 2017, for tax years ending on or after September 28, 2017.
It’s challenging to succeed in the manufacturing industry without a plan, or at least some written goals. A basic plan should include your annual budget. Even better, it should include multi-year budgets and projections.
Forecasting may be time consuming, but is a necessary step in predicting and controlling future success. Many of the most successful manufacturing companies we work with not only engage in forecasting, but do so with their entire executive team and on a regular basis.
There are many lucrative tax benefits for manufacturers. Concannon Miller’s Manufacturing Team is immersed in the industry and is able to identify missed tax opportunities.
As manufacturers look for every opportunity to cut costs, one important area to address is equipment downtime. A breakdown, even for just an hour, reverberates through the manufacturing process.
Brewery owners wear lots of hats – in addition to your CEO duties, you may also handle your company’s production, bottling, canning and/or kegging, marketing and hiring. You might even shovel the sidewalks in the winter.
A critical job responsibility that should always be on your mind is that which a CFO handles. Your brewery may not be big enough to warrant having a CFO, but that doesn’t mean you shouldn’t think like one.
The loading dock is an often-neglected cash leak for manufacturers. Shipment delays, poor labeling and confusing packaging can severely slow production and cut your profitability.
Take a hint from retailers: Set up a standardized vendor compliance program.
Start by talking with your receiving employees for suggestions on what can be done to speed up the process. Some of the steps retailers take that you can consider are:
After being extended more than a dozen times by various pieces of legislation, the research and development (R&D) credit was finally made permanent by the Protecting Americans from Tax Hikes (PATH) Act of 2015.
Now the Tax Cuts and Jobs Act (TCJA), goes one step farther. Not only does the law preserve the credit in all its glory, it generally enhances it in context of several other provisions.
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.