Alcoholic beverage production credit
Who is eligible?
Distributors registered under Article 18 of the Tax Law (taxes on alcoholic beverages) may be entitled to a refundable credit if they produced in New York State during the tax year no more than:
• 60 million gallons of beer
• 60 million gallons of cider
• 20 million gallons of wine
• 800,000 gallons of liquor
Note: The credit is not applied against alcoholic beverages tax (ABT) liability. The credit is claimed by the owners (sole proprietor, C-corporation, partner, or S-corporation shareholder) when they file an annual income or corporation tax return.
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?
During the course of an audit, a taxpayer may be required to provide documentation to substantiate entitlement to this credit. 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.