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Craft Brewery














































                 Craft brewing is an industry that has been growing  produce more than 100,000 barrels per year to file
               exponentially for several years. While it is a great   an annual report and pay a fee.
               time to open a brewery, staying relevant and grow-
               ing your business can be equally challenging. Many   Tax rebates for breweries are rare, but there are
               challenges have come along with the current craft    some. The primary way breweries can reduce their
               beer explosion, not the least of which is keeping up  taxes is through tax credits usually applied to cap-
               with demand. It’s no secret that many breweries      ital expenditures or new equipment. These credits
               find themselves struggling to meet the demand for    are offered by the federal government yearly, and
               their product.                                       every brewery should apply for them.

                                     Taxes                                            Competition


                 Breweries have a general misconception that they     Brewery owners should always think about how
               don’t have to pay taxes on top of the price increas-  they can differentiate themselves from other brew-
               es they charge for their beers when in fact, they do.  eries in their local market. The more you know
               You can avoid paying taxes somehow, but it is not    about the competition, the easier it is to compete
               advisable, and the penalties are severe if you don’t   with them. You will need to consider your price
               follow proper procedures by filing quarterly esti-   points, your unique selling proposition, and what
               mated tax returns.                                   makes your brewery stand out from others. To do
                                                                    this, you’ll want to collect as much information as
                 Brewers must also pay close attention to the       you can about your competition. It doesn’t end
               Alcohol and Tobacco Tax and Trade Bureau (TTB).      there. Once you have a large enough customer
                                                                    base, you’ll notice that many of them will want to
                 Once a brewery has sold its first keg of beer, it will  know how your beer is made, especially if they are
               need to get Brewer’s Notice required for breweries   true connoisseurs.  (continued)
               to sell beer. The TTB also requires brewers who
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