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Last Updated: 12/13/2017

Small Winery Credit and Annual Production Report

Who qualifies for the tax credit?​

Small wineries that produce 75,000 gallons or less of wine and cider in a calendar year qualify for this tax credit. If eligible, they claim the credit on the excise tax they owe on wine and cider sales in the following fiscal year.

How much is the tax credit?

The tax credit equals the excise tax the winery owes on wine or cider they sell during the fiscal year, up to $136,275.

When do you claim the tax credit?

You claim the credit the following fiscal year.

  • To claim credit January–June 2018, you must have qualified in 2016.
  • To claim credit July 2018–June 2019, you must qualify in 2017.

How do you take the tax credit?

Enter the amount you want to take on the credit line of your Farm Winery Tax Return (Form LB56F). Remember that the credit cannot exceed the tax liability.

Small Winery Annual Report

You must report the amount of gallons of wine or cider you produced during the calendar year on the Small Winery Production Report (Form LB56P) . File your report with your December Farm Winery Tax Return (Form LB56F), due January 18.

How do you file the report?

Electronic filers

Paper filers

Complete and mail the Small Winery Production Report with your December Farm Winery return.

Remember!  Report the number of gallons you produced and not the gallons you sold in Minnesota.