Unique Tax Breaks for Breweries

Is your business familiar with the unique tax breaks available in the brewery industry?  AAFCPAs has provided for your convenience the top five tax insights that could have a major impact on reducing your tax burden:

Section 179 Depreciation

Breweries are capital intensive businesses, and equipment investments can be significant. Section 179 allows breweries to deduct the property placed in service in the year of acquisition as opposed to depreciating it over its useful life. There are dollar limitations on how much you may deduct in a single year, as well as business income limits, so we encourage you to consult your AAFCPAs tax partner.

Bonus Depreciation

Breweries may also take an additional 50% bonus depreciation deduction for qualifying property in the year the property is placed in service. There is no business income limitation for bonus depreciation, so in the early stages of business that often result in net operating losses, these can be carried forward to offset future taxable income.

Cost Segregation Studies

The shorter life span attributable to capital purchases, the quicker your company may realize the tax benefit. For build outs of your brewery, AAFCPAs recommends that you evaluate the benefits of a cost segregation study. In a cost segregation study, certain commercial building costs may be reclassified to shorten the depreciation time for taxation purposes, which reduces current income tax obligations.  This may add up to substantial savings


Domestic Production Activities Deduction (DPAD)

The DPAD is a 9% deduction on qualified production activities, which could equate to a 3% reduction in your tax rate depending on the tax bracket the company falls in.

Research & Development Tax Credit

A credit is always better than a deduction, but AAFCPAs recommends a cost benefit analysis be performed to ensure it makes sense to take the credit. Breweries can qualify for R&D tax credits for certain activities such as improving brewing processes or creating a new beer.

When applying the above tax benefits, note that they are specific to brewing operations.  The existence of ancillary businesses, such as restaurants, retail, etc. may impact your ability to utilize them. In addition, certain states make tax benefits available to brewers who locate within their borders.

If you have any questions or need additional information, please contact Dan Stanhope, CPA, MSA at (774) 512-4134, dstanhope@aafcpa.com.

 

Dan Stanhope, CPA, is a partner at AAFCPAs based in Westboro, Boston and Wellesley. He has over 12 years of experience providing tax, assurance and business advisory solutions to closely owned, privately-held businesses. Dan can be reached at 774-512-4134 and at dstanhope@aafcpa.com  

Dan Stanhope, CPA, is a partner at AAFCPAs based in Westboro, Boston and Wellesley. He has over 12 years of experience providing tax, assurance and business advisory solutions to closely owned, privately-held businesses. Dan can be reached at 774-512-4134 and at dstanhope@aafcpa.com

 

What's on Tap for St. Paddy's Day?

Here are six ways to get your shamrock on this weekend that do not involve green beer:


ONE:
Poured on nitro and released for a special St. Patrick's Day event, "For The Love of Ireland", is a partnership between Aeronaut Brewing and the Irish International Immigrant center. These incredible friends are playing a tremendous role in assisting families from all over the world, fighting hard for Muslim immigrants affected by US policy changes. Available on Friday, March 17 at Aeronaut Brewing.

TWO:
Join Dorchester Brewing Company for a full day of St. Patrick's Day fun on Saturday, March 18 from 11:30 a.m. to 11 p.m. The day kicks-off with a “Savin Stout” beer release -- an Irish dry stout served on Nitro, bittered with Chinook hops, and fermented in a British yeast strain. This stout contains roasted barley, creating its deep brown color, and smoky, cocoa notes. Live Irish music will play from 2 to 5 p.m. alongside a food truck serving up bites from 4 to 9 p.m. For more details, click here.

THREE: 
Wormtown is celebrating its 7th anniversary on Friday, March 17 from noon to 10 p.m. The full day celebration will open up “Fermentation Alley,” and include live music, sweet treats, giveaways and a special birthday release, "Brew #7." Cellared beers including Tennessee Tats, an Imperial Oatmeal Stout aged in Jack Daniel barrels, will be in the line-up along with many others. For more information, click here.

FOUR:
Navigation Brewing Co’s St. Paddy’s Day celebration will kick-off Friday, March 17 from 5 to 9 p.m., with Phoenix Rising Pizza paired with three Irish offerings – an Irish Stout, Irish Porter, and an Old Irish Ale. Other suds on tap include a Milk Stout, Double Porter, Chocolate Oatmeal Stout, Lowell Common and Citra dry hopped Pale Ale. The party keeps ShamRocking on Saturday, March 18 from 2 to 8 p.m. with HomeKitchen serving up bites.

FIVE:
On Friday, March 17, Element Brewing Co. will host Dan and the Dirty Catechism from 6:30 to 9:30 p.m. The Western Mass group sings and shouts songs about life, love, and sin. They weave their way through a variety of musical styles while performing the musical sermon about the virtues of sin and dirty living. Step right up and be saved...but it’s more fun if you get involved. For more information, For more details, click here.

SIX: 
Cape Cod Beer will launch their "Top Notch Stout" and raise a pint or two in honor of Saint Patrick’s Day. They've taken their velvety smooth Oatmeal Stout to the next level and aged it in Notch whiskey barrels (from Triple Eight Distillery). This dark brew with a hint of whiskey will be available only at the brewery in 750 ml. champagne bottles. 
OG: 16.7°P   ABV: 5.5%   IBUs: 42

 

 

Freshman Brewers Raised $2,500 for the Mass Brewers Guild

The Mass Brewers Guild packed Castle Island Brewing Co. in Norwood, Mass.,  on Saturday, March 4 during its sold out, “Meet the Brewers: Freshman Class” event, where seventy patrons participated in an afternoon of speed-dating for beer.

Groups of ten were given ten-minutes with each brewery to hear their story, taste their beer, and ask questions before rotating to the next brewer.

The roundtable style event was the first of its kind hosted by the Mass Brewers Guild, with the goal to foster learning and education of the brewing process, and inspire deeper connections between brewers and craft beer lovers.

The line-up of freshman brewers included; Barrel House Z, Bone Up Brewing Co., Castle Island Brewing Co., Craft Roots Brewing Co., Exhibit ‘A’ Brewing, Lamplighter Brewing and Start Line Brewing.

“The afternoon was a huge success, and just as much fun for the brewers as it was for the guests,” says Rob Burns, co-founder of Night Shift and President of the Mass Brewers Guild. “We hope to launch several "Meet the Brewer" style events in the future and turn it into a series that our friends and fans can follow and attend.”

Thanks to the generosity of the brewers donating their time and beer, and the craft beer loving community for purchasing tickets, the event raised $2,500 for the Mass Brewers Guild.

The Mass Brewers Guild is a nonprofit organization that works to protect and promote the interests of craft brewers across the Commonwealth. From lobbying on Beacon Hill to creating marketing and educational programs for brewers, the Mass Brewers Guild works to ensure that breweries across the state remain successful and independent businesses.

Power Beer Fest Is Coming! Tickets Are Now On Sale!

More than 50 Massachusetts brewers are coming together to launch the first ever, “Power Beer Fest,” on Saturday, April 29 at the SoWa Power Station. The two-session festival -- 1 to 4:30 p.m. and 6 to 9:30 p.m. -- will kick-off the season opening of the SoWa Open Market located at 540 Harrison Ave, Boston, MA 02118. 

Tickets are $55 and can be purchased at powerbeerfest.eventbrite.com

Proceeds of each sale will benefit the Massachusetts Brewers Guild, a nonprofit organization that protects and promotes the interests of craft brewers across the Commonwealth. Power Beer Fest is the only beer event in the state organized by Massachusetts Craft Brewers to raise funds to create educational and marketing programs for local breweries, as well as support its government affairs work at the legislative level.

Participating breweries include:
Three Beards Beer Company
Aeronaut Brewing Company
Amherst Brewing Co. 
Bad Martha
Battle Road Brewing Company
Bent Water Brewing Co.
Berkley Beer Company
Berkshire Brewing Company
Big Elm Brewing
Bog Iron Brewing
Bolton Beer Works
Boston Beer Works
Brazo Fuerte Artisanal Beer
Brew Practitioners LLC
Bright Ideas Brewing
Cambridge Brewing Company
Cape Ann Brewing Co.
Cape Cod Beer
Castle Island Brewing Co.
Cisco Brewers
Clown Shoes Beer
Cold Harbor Brewing Company
Devil’s Purse Brewing Co.
Exhibit ‘A’ Brewing Co.
Flying Dreams Brewing Co.
Hopsters
Idle Hands Craft Ale
Independent Fermentations (IndieFerm)
Ipswich Ale Brewery
Jack’s Abby Craft Lagers
Lamplighter Brewing Co.
Lefty’s Brewing Co.
Lord Hobo Brewing Co.
Mass Bay Brewing Co.
Mayflower Brewing Company
Medford Brewing Company
Medusa Brewing Company
Merrimack Ales
Mighty Squirrel
Moon Hill Brewing Co.
New City Brewery
Newburyport Brewing Co.
Night Shift Brewing
Old Planters
Outlook Farm Brewery
Portico Brewing
River Styx Brewing
Riverwalk Brewing Co.
Salt Box Kitchen
Samuel Adams Boston Brewery
Somerville Brewing Company
Spencer Brewery
Start Line Brewing Company
The Tap Brewing Company
True West Brewery
Wachusett
Westfield River Brewing
Winter Hill Brewing Co.
Wormtown

The Massachusetts Craft beer scene is a power house industry with more than 122 breweries across the state. Breweries employ locals, drive traffic and tourism to the Commonwealth and pour world-class craft beer to thirsty locals and travelers. Massachusetts’ breweries are ranked among the best in the world, country and region, with accolades and awards being announced weekly.

**THIS IS A 21+ EVENT. NO EXCEPTIONS. IDS REQUIRED AT THE DOOR. NO DOGS ALLOWED - WITH THE EXCEPTION OF CERTIFIED SERVICE ANIMALS **

For Beer Lovers: Valentine’s Day Gift Ideas & Event Round-Up

No plans? No problem. Whether you are single and ready to mingle, on lock down, or just looking to hang out with friends, we’ve got you covered:

Gardner Ale House is hosting a “Be Our Valentine Dinner,” on Tuesday, Feb. 14 from 5 to 9 p.m., located at 74 Parker St. in Gardner MA. An elegant dinner for two for only $60 -- the menu boasts baked brie, a trio of steak medallions, shrimp cocktail, duck confit with risotto and much more. Reservations are encouraged. Check out the website, gardnerale.com, for the complete menu and details.

Night Shift Brewing in Everett is hosting Flight Night – a Valentine’s Day Cheese Tasting. Forget the chocolates and celebrate Valentine's Day with cheese and beer this year. Formaggio's Will Sissle will be onsite in the Annex on Tuesday, Feb. 14 for an evening of tasting and learning. Will is collaborating with the Night Shift team to put together a set of four amazing cheeses, expertly paired with 4 oz pours of Night Shift’s renowned beers. 5 p.m. session tickets are still available. For tickets, click here.

Not looking to get all sappy with the lovebirds this year? Head to Dorchester Brewing Co., and boycott the whole thing! Anti-Valentine’s Day Trivia starts at 7:30 p.m., entry is free. For more details, click here.

Roses are red, violets are blue, beer is cheaper than a dinner for two! Two local breweries have new releases on tap that will help set the mood and serve as the perfect gift this Valentine’s Day:

Cape Cod Beer is releasing its popular Vanilla Bean Porter for Valentine’s Day.

This drinkable dark beer with a chocolatey malt character is infused with Madagascar Vanilla Beans. Madagascar Vanilla Beans are known for their superior flavor and aromatic qualities making them the most popular and sought after vanilla variety. The label features a lemur, the most well-known wildlife from Madagascar. The flavor is rich, dark and creamy with a sweet, buttery aroma, pairing perfectly with the delicious dark chocolate malt flavor in our Porter. This beer is exclusive to the brewery and available in 750 ml bottles only. It’s delicious paired with chocolate or with vanilla ice cream as a beer float.

Love makes the beer-go-round! Happy Sol Blood Orange Hef, Slumbrew's most popular beer, started out as Caitlin's Valentine's Day gift from her husband Jeff. Five years later this duo runs Somerville Brewing Company and are making plans to expand American Fresh Brewhouse locations. They are also launching a new release called My Better Half -  an Imperial Cream Ale blend of half ale and half lager. The beer is often requested by newly engaged couples to serve as their “wedding beer.” 

However you are celebrating (or not celebrating) we hope its with a good local beer! Cheers! 

Northeast Craft Beer Pavilion This Weekend!

This weekend the Mass Brewers Guild will host a table at the Northeast Craft Beer Pavilion. The event will showcase breweries from around New England and across the US.

We’ll be selling tickets to our spring beer festival at the SoWa Power Station at a discounted rate, and offering chances to win a Beer Lovers Prize Pack filled to the brim with beer, gift cards, glassware, hats, and t-shirts generously donated by local breweries: Wachusett Brewing Co., Start Line Brewing Co., Sam Adams, Medusa Brewing Co., Gardner Ale House, Slumbrew, and Night Shift Brewing Co.

Tickets are $35 in advance and $45 at the door. Want $5 off entry? Use code MABREW. To purchase tickets, visit bostonglobetravelshow.com/beer

 

Massachusetts Brewers Guild Celebrates 10th Anniversary

Massachusetts Brewers Guild Celebrates 10th Anniversary

Mass Brewers Guild Board of Directors post with State Treasurer Deb Goldberg who delivered the afternoon's keynote address .