Alcoholic beverage production credit
New for 2023
For tax years beginning on or after January 1, 2023, the credit for the first 500,000 gallons of wine and liquor produced in New York State per tax year increased to:
- thirty cents per gallon of wine;
- $2.54 per gallon of liquor containing over 2% but not more than 24% alcohol by volume; and
- $6.44 per gallon of liquor containing over 24% alcohol by volume.
Who is eligible?
You are entitled to this refundable credit if you or your business:
- is a registered distributor under Article 18 of the Tax Law (taxes on alcoholic beverages); and
- produced in New York State during the tax year:
• 60,000,000 or fewer gallons of beer
• 60,000,000 or fewer gallons of cider
• 20,000,000 or fewer gallons of wine
• 800,000 or fewer gallons of liquor
How much is the credit?
The amount of credit per tax year for the first 500,000 gallons produced in New York State is:
- 14 cents (.14) per gallon of beer or cider,
- 30 cents (.30) per gallon of wine,
- $2.54 per gallon of liquor with more than 2% but not more than 24% alcohol by volume (ABV), and
- $6.44 per gallon of liquor with more than 24% ABV.
In excess of 500,000 gallons, the credit is 4.5 cents (.045) per gallon up to 15 million additional gallons for beer, cider, or wine, and up to 300,000 additional gallons for liquor.
What are the recordkeeping requirements?
Taxpayers must prove entitlement to tax credits. During the course of an audit, you may be required to provide documentation to substantiate entitlement based on the specific facts of your tax credit claim. See Alcoholic beverage production credit recordkeeping requirements for more information on the recordkeeping requirements for this credit.
Additional information
- Form CT-636, Alcoholic Beverage Production Credit, and its instructions (for corporations)
- Form IT-636, Alcoholic Beverage Production Credit, and its instructions (for all others)
To learn about other New York State tax credits available to businesses, see Business incentives.
