R&D Tax Credits for the Brewery Industry

Refunds are available for companies performing research within the Brewery Industry. The research credit provides dollar-for-dollar cash savings each year for companies performing activities related to the development of new or improved products and processes. These benefits could provide much needed cash to hire additional employees, increase R&D, expand production facilities, etc.

Many companies involved with brewing are unaware that their efforts within designing and developing their products can yield a large amount of research credits. Examples of R&D activities related to the industry as well as potentially qualifying job titles are listed below.

Examples of Qualifying R&D Activities

Related to the development of new or improved:

• Bottle conditioning
• Filtration methodologies or wastewater methods
• Hopping techniques and styles
• Manufacturing technology in efforts to improve manufacturing flexibility and agility due to increased product volume and diversity
• Packaging designs to ensure shelf life longevity
• Product formulations or recipes (e.g. dry hopping, fermentation methods)
• Product formulations or improved ingredient mixing methods or testing of product ingredient combinations relative to new flavors or enhancements
• Prototype product samples for testing and validation of new recipe formulations
• Quality assurance testing processes
• Testing of prototype samples for analytical and microbiological qualities

Potentially Qualifying R&D Job Titles

• Assistant Brewer
• Head Brewer
• Lab Assistant
• Lab Manager
• Production Operations Manager
• Regional Brewer

AMT Offset

For tax years beginning after December 31, 2015, eligible small businesses (those with $50 million or less of gross receipts) may claim the research credit against AMT liability. ​​​​​​​

Up to $250,000 in Payroll Tax

Qualified start-up companies may elect to use up to $250,000 of the research credit against payroll taxes. Treasury Regulations have substantially broadened the range of taxpayers who are eligible for the credit. Start-ups to publicly traded businesses who were previously unable to realize a benefit from this lucrative tax credit should reassess their eligibility.