TTB Expands Policy Allowing More Wine to Qualify for Excise Tax Credits
The Alcohol and Tobacco Tax and Trade Bureau is expanding and extending an alternate tax calculation procedure allowing more wine to qualify for expanded excise tax credits under recent tax reform legislation, it said in an industry circular dated May…
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17. TTB will until Dec. 31 allow producing wineries to pay taxes on wine physically stored at a bonded wine cellar or bonded winery, and not on the producing winery’s bonded premises, as if the wine were located at the producing winery’s bonded premises. That allows the wine to benefit from the tax credits without having to physically transport it back to the producing winery’s bonded premises, as would otherwise be required because the new tax law’s credits are not transferrable, TTB said. TTB had earlier announced a similar policy that applied only to bonded wine cellars and was set to run until June 30. The agency is extending the policy until Dec. 31 and also allowing wine at other bonded wineries to qualify. Under the tax reform legislation, tax credits formerly applicable only to small wineries were expanded by removing an eligibility cap on wine production (see 1711170012).