Massachusetts Brewers Guild

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

 

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 **

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 .