Tax Incentive for Breweries: The R&D Tax Credit

A New Source of Capital to Grow Your Business 

What Could Your Credit Look Like?  

Multidisciplinary Team 

Attorneys, Tax Professionals, & Engineers

$800M+

in Federal and State R&D Tax Credits

2,700 +

R&D Tax Credit Studies Completed

PRECISE | RESPONSIVE | TRUSTWORTHY

01

What is the R&D Tax Credit?

  • Tax incentive for breweries that rewards the development of new or improved products (recipes) and processes (brewing methods) 
  • You’re constantly trying to perfect your flavors and your process, and this Credit rewards your innovation 
  • In addition to the Federal credit, about 40 states have their own initiative   
  • This is a Credit, which is more powerful than a deduction.  It doesn’t lower your taxable income like a deduction does.  Instead, it directly reduces the amount of tax you owe, dollar-for-dollar  
  • The Credit can be captured retroactively and carried forward for up to 20 years – it can be a source of increased cash flow for the long-term  

02

How Can Brewmasters Benefit from the R&D Tax Credit?

  • Many of a brewmaster’s day to day activities are actually considered R&D  
  • Brewmasters can claim qualified expenses, including wages paid to in-house employees who perform qualified activities, and costs paid for supplies and materials  
  • For every qualifying dollar identified, brewmasters can receive up to $ 0.10 in benefit  
  • The resulting increased cash flow can be used to hire more staff, expand your brewery, or support future innovation  

03

What Qualifying Activities do Brewmasters Perform? 

Developing new or improved:  

  • Recipes (for flavor, texture, aroma, etc.) 
  • Formulations (low-calorie, ready-to-drink, low alcohol) 
  • Processes (heating techniques and enzymes for mashing, hops boiling, fermentation and yeast strains, ingredient-mixing, filtration, bottle conditioning, bottling, canning, packaging) 
  • Equipment design (stills, tanks, etc.) 
  • Package design (for shelf-stability, freshness, taste) 
  • Software applications  

Want to Learn More?

You know about tapping a keg.   
We know about tapping into tax savings.