Tax Breaks:
THE NEXT GREAT WINE PAIRING Guest Contributor: Tetyana Guguchkina Manager - Research & Development Tax Credit Services, KBKG
W
hile California has dominated the wine industry for decades, new regions across the United States are making waves as they delight wine aficionados here and abroad. According to the American Association of Wine Economists, the U.S. is home to over 12,000 wineries, amounting to an incredible $20 billion industry.1 With new tasting rooms popping up and creating competition, winemakers are experimenting with new ways to push the envelope and make their mark. And while winemakers or vintners know about wine pairing and barrel aging, they may be unaware of a tax credit that is ripe for the picking.
R&D Tax Credits for the Wine Industry The R&D Tax Credit is one of the most valuable, yet overlooked, credits leveraged by savvy businesses each year. The research credit is a federal benefit that is also available in many states. Winemakers can earn up to 13.5 cents for every dollar spent, enjoy a dollar-for-dollar reduction in federal and state income tax liability, and unused credits can be carried forward up to 20 years. Wineries creating new blends, optimizing bottling processes, and/or improving product quality are ideal candidates for the credit. 1
Mapped & Ranked: The States With The Most Wineries In America (2018) - VinePair KROST QUARTERLY VOL. 2 ISSUE 2 - THE HOSPITALITY ISSUE
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