Tax Strategies for Breweries: Leasing vs. Buying Kegs, Choice of Entity, R&D Credit, Excise and Other Taxes

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Thursday, June 16, 2022

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Course Materials

This course will address general business decisions, the taxes paid that are specific to beverage alcohol industries, and the incentives available for brewery owners and advisers. Our brewery experts will focus on steps to minimize taxes and maximize profits for these businesses.

Description

There are unique tax opportunities available for breweries. During the pandemic, certain brewery business models thrived while others suffered greatly. Breweries are ideal candidates for recent economic relief and powerful existing tax incentives.

Tax problems can stack up quickly for breweries. Many materials, such as kegs, must either be leased or purchased, new product lines developed, and barrel-aging often prevents the immediate opening of these businesses. Simultaneously, breweries are prime candidates for cost segregation, whether leasing or owning property, and research and development credits are available for new lines and brands.

Because they operate in a highly regulated industry, breweries are subjected to additional layers of tax, including excise alcohol tax, sales, and specific state and local taxes. With interest in this industry continuing to grow, tax practitioners need to stay abreast of the unique taxes, incentives, and caveats that apply to this regulated environment.

Listen as our panel of craft beer business and tax experts points out tax considerations of opening, exiting, and operating a brewery.

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Outline

  1. Breweries: an introduction to the industry and regulatory environment
  2. Choosing the right organizational structure options and business model
  3. Tax saving opportunities
    1. Small producer credit (excise tax)
    2. Cost segregation
    3. Research and development credits
    4. Pandemic relief
  4. State and local compliance
  5. Maximizing tax structures when operating in a multistate environment
  6. Planning opportunities for a tax-efficient exit

Benefits

The panel will review these and other critical issues:

  • Strategizing business model and organizational structure
  • How breweries are ideally suited for the research and development credit and cost segregation
  • Handling taxes applicable to the beer industry, including alcohol excise tax
  • Pandemic relief available to beer makers

Faculty

Pearman, Maria
Maria Pearman, CPA, CGMA
Principal and Beverage Practice Leader
GHJ

Ms. Pearman's areas of expertise are advisory services, beverage, food and beverage.

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Sehgal, Akash
Akash Sehgal
Director of Tax
GHJ

Mr. Sehgal leads the Firm’s state and local tax practice with a focus on multistate income and franchise tax,...  |  Read More

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