Navigate Up
Sign In
Last Updated: 11/29/2017

Alcoholic Beverage Tax

New Small Winery Credit and Annual Production Report

A new tax credit was passed into law earlier this year for small wineries that produce 75,000 gallons or less of wine and cider in a calendar year. The credit applies to excise tax due on wine and cider they sell at the winery.

How does the credit work?

Wineries are eligible for the small winery credit if they produce 75,000 gallons or less of wine and cider during the calendar year (January 1-December 31).

Eligible wineries may claim the credit against the excise tax they owe on wine and cider they sell in the next fiscal year (July 1–June 30). The maximum credit is $136,275 per year.

When may I claim the credit?

The credit starts next year for wineries that produced 75,000 gallons or less in 2016 and 2017, as shown in the table below.

If you qualified in year: Claim the credit:
​2016 ​January–June 2018
​2017 ​July 2018–June 2019

How does this change affect me?

There are new filing requirements due to this credit. Starting in 2018, all wineries claiming the small winery credit must file:

  • Farm Winery Tax Return (Form LB56F) every month, starting with the January return (due February 18). Quarterly and annual returns will no longer be allowed.
  • Small Winery Production Report (Form LB56P) every year to report how much wine or cider they produced in 2017 (and future years). This is a new report.

How do I claim the credit?

Enter the credit amount on the new credit line of your monthly Farm Winery Tax Return.

For details and filing instructions, see Small Winery Credit and Annual Production Report.

Native Alcohol account is changing to Reservation Sales in e-Services

We are changing the name of your Native Alc (Alcohol) account to Reservation Sales.

The change takes effect for the January 2018 period (due February 20, 2018).

How does this change affect me?

When you file your January 2018 report in e-Services, you will enter your information or upload the updated import file into the Reservation Sales account.

The updated Alcohol Sales on Reservations import template will be available on our website at the end of January.