Can Your Business Benefit from the Enhanced Alcoholic Beverage Production Credit?

Can Your Business Benefit from the Enhanced Alcoholic Beverage Production Credit?

Along with a new New York State budget for fiscal year 2024 comes an expansion of certain Alcoholic Beverage Production Credits (ABPC), which can be good news for eligible distillers, wineries, and farm-based beverage producers.

Each year, New York State alcohol manufacturers pay an excise tax to the state. This can be offset by filing for an ABPC. Until recently, the credit was the same regardless of whether you manufactured beer, cider, wine, or liquor. It equaled $.14/gallon for each of the first 500,000 gallons plus $.045/gallon for each gallon above 500,000 (up to a maximum of an additional 18 million gallons for beer, cider, or wine and an additional 300,000 gallons of liquor).

For most beers and ciders, the credit equaled the excise tax. For wine and liquor, however, the credit was lower than the excise tax.

Effective immediately for tax years on or after January 1, 2023, under New York Tax Law Section 37, if the following is produced in New York, the ABPC equals:

  • Beer: $.14/gallon (no change).
  • Certain cider products: $.14/gallon (no change). Applies to cider, artificially carbonated sparkling cider, and natural sparkling cider containing more than 3.2% alcohol.
  • Certain wine products: $.30/gallon. Applies to still wine, artificially carbonated sparking wine, and natural sparking wine.
  • Certain liquors containing 2% to 24% alcohol: $2.54/gallon.
  • Certain liquors containing less than 2% alcohol: No credit.
  • All other liquors: $6.44/gallon.

You will still need to pay the excise tax and then file for the ABPC to receive what equates to a rebate. Corporations need to file Form CT-636; all others need to file Form IT-636.

Your business is eligible for the ABPC if you are a registered distributor under Article 18 of the Tax Law and during the tax year produced 60 million or fewer gallons of beer or cider; 20 million or fewer gallons of wine; and 800,000 or fewer gallons of liquor. Certain recordkeeping requirements apply. For details, visit the New York State Department of Taxation & Finance website.

If you have any questions about how the ABPC change may impact your accounting and taxes, please give us a call. We’re RBT CPAs, a leading accounting firm in the Hudson Valley and beyond for over 50 years, and we believe we succeed when we help you succeed. Let’s start today!

Is Your Vet Practice Under the Weather? Maybe the Cloud Can Help

Is Your Vet Practice Under the Weather? Maybe the Cloud Can Help

As an owner and/or manager of a veterinary practice(s), the last thing you need is to add a growing list of IT responsibilities to an already full workload balancing the talent shortage, ever-changing customer demands, and a wonky financial environment – not to mention taking care of animals, their caretakers, and your business. While changing your IT environment may be the last thing on your mind, perhaps you should consider making it the first, as cloud computing solutions help manage and/or address many of the challenges facing veterinary practices today.

Say goodbye to IT responsibilities.

When you move to a cloud (a.k.a. Internet) solution, your web-based solution provider takes on responsibility for keeping the system updated, working at its peak, and secure. You’ll no longer be required to buy, install, and monitor equipment like a server or manually install patches (or pay someone to do it). You won’t have to worry about backing up data, a system going down, or protecting data – that’s all on your provider, too. Rather than keeping an IT person on call, most cloud-based service providers include customer service and IT assistance as part of their fees.

Increase productivity and decrease stress.

Help yourself (and your team, if applicable) cut down on administrative work so you’re free to focus on what you do best – whether that’s boarding animals, providing same day care, and/or running a pet hospital for longer-term needs. Cloud-based software can help you communicate with animal owners; send reminders about visits, care, or prescriptions; bill for services (or follow up on bills); and more. Self-scheduling tools save time for both you and your customers. You can even operate more efficiently by accessing and updating health records and treatment plans within seconds from any examination room with just a few keystrokes.

Better manage finances, inventory, and staff.

Cloud-based services are usually by subscription, so you know how much it costs each month and can budget accordingly. Some solutions include tools that will allow you to perform back-office responsibilities (like billing, payment processing, and collections) while gathering data that can help you analyze different aspects of business (i.e., inventory). What’s more, you don’t have to be tethered to a desk, as cloud-based solutions can be accessed from anywhere there’s an Internet connection and from any Internet-enabled device (i.e., phone, tablet, or laptop).

Prepare to grow.

Cloud-based solutions are oftentimes scalable, so you can add to them, add users, or make changes as your business needs change. Plus, even if you have multiple locations now or add locations in the future, data stored in the cloud can be viewed and updated in real-time from any location.

Making the transition to a cloud-based solution may mean some short-term issues you may want to be prepared for, just in case.

  1. Shop around. There are a wide variety of vet-focused cloud-based solutions available. Consider exploring several options so you can understand the full breadth of opportunities available, evaluate pricing and contracts, and make the best choice for your business.
  2. With the implementation of new software comes new training needs. Support your staff leading up to and through the transition by hosting training to promote their comfort with new software. Also, make sure you have a point of contact at the software provider’s who can be available to answer technical questions, especially during the transition.
  3. Check data for accuracy. Upon transitioning to a cloud-based software, make sure client information and other data transferred correctly (i.e., Did your clients’ open accounts receivable balances transfer correctly?). Data accuracy will be vital to making the most of financial reporting tools. It’s easiest to identify and fix any issues identified early.

While you’re busy considering cloud-based solutions, remember, RBT CPAs is here to help free you up to concentrate on your business. We have been providing accounting, tax, audit, and business advisory services in the Hudson Valley and beyond for over 50 years, and we believe we succeed when we help you succeed. Interested in learning more? Give us a call today!

New Funding Available to Boost Quality and Reduce Energy Costs of Multi-Family HUD Homes

New Funding Available to Boost Quality and Reduce Energy Costs of Multi-Family HUD Homes

On May 11, the U.S. Department of Housing and Urban Development (HUD) announced the availability of new funding through the Green and Resilient Retrofit Program (GRRP). Eligible owners of HUD-assisted multifamily properties serving low-income residents can apply for funds to retrofit solutions that reduce greenhouse gas emissions; increase energy and water efficiency; and boost climate resiliency.

The Inflation Reduction Act provided HUD with $837.5 million in grant and loan subsidy funding and $4 billion in loan commitment authority for GRRP to make HUD multi-family homes healthier, more energy efficient, and more climate resilient.

Funding can be invested in technologies like solar panels, heat pumps, wind-resistant roofing, insulation, low embodied carbon materials, and more. It’s intended to enhance quality of life, while providing safer and healthier living environments and keeping residents safe during natural disasters and extreme weather events.

There are three award cohorts available:

  • Elements Award: $40k/unit or $750k/property. Use funding to add elements to planned renovations that measurably help with climate resilience, energy efficiency, electrification, and renewable energy. For example, install electric HVAC heat pumps, Energy Star windows, fire resistant roofs and clean energy generation systems. HUD expects to make approximately 200 awards with $140 million in funding.
  • Leading Edge Award: $60k/unit or $10 million/property. Use funding for retrofit activities that result in net zero, renewable energy generation, building materials with lower Embodied Carbon, and climate resilience. Complementing the owner’s existing finance strategy, awards enable recapitalization to the highest standards of energy efficiency, emissions reductions, and climate resilience, under programs like LEED and PHIUS. HUD expects to make approximately 100 awards with $400 million in funding.
  • Comprehensive Award: $80k/unit or $20 million/property. Use funding to upgrade properties with the highest need for climate resilience and utility efficiency upgrades, regardless of prior development or environmental retrofit experience. Awardees will have support commissioning property assessments and planning a redevelopment that meets the property’s specific needs and GRRP retrofit objectives. HUD expects to make approximately 300 awards with $1.47 billion in funding.

Funding will be provided in tranches, providing a few opportunities to apply. Funding will be in the form of grants or loans. Additional information and resources are available:

While you’re considering whether to apply for funds, also consider whether you can free up some time by partnering with RBT CPAs for your accounting, tax, audit, and financial advisory needs. We’re a leading firm in the Hudson Valley and our professionals believe we succeed when we help our clients succeed. Interested in learning more? Give us a call, today!