In our last article, we highlighted several provisions of the One Big Beautiful Bill Act (OBBBA) relevant to breweries and distilleries, including permanent 100% bonus depreciation, the increased Section 179 deduction, and immediate R&D deductions, to name a few. If you are an employer at a brewery or distillery, you should be aware of two additional provisions of the new tax law—the new “no tax on tips” and “no tax on overtime” rules. These provisions are likely applicable to your employees, and you’ll need to be aware of your reporting obligations. Here is some key information for both employees and employers regarding the new tip and overtime tax laws under the OBBBA.

“No Tax on Tips”

For Employees:

The OBBBA creates a temporary deduction of up to $25,000 per year for qualified tips received by individuals in occupations where tipping is regular and customary, available for tax years 2025 through 2028. The deduction begins to phase out when the taxpayer’s modified adjusted gross income (MAGI) exceeds $150,000 ($300,000 for joint filers). The deduction is limited to tips voluntarily paid by customers (not mandatory service charges), including tips shared through pooling arrangements.

For Employers:

Employers must separately report qualified tips for tipped employees. W-2s and 1099s will need to specify the qualifying occupation of the tip recipient. The Treasury Department is expected to issue a list of qualifying occupations (by October 2025) and provide further IRS guidance for tracking designated cash tips.

“No Tax on Overtime”

For Employees:

The OBBBA creates a temporary deduction of up to $12,500 ($25,000 for joint returns) for individuals who receive qualified overtime compensation (as defined by the Fair Labor Standards Act), available for tax years 2025 through 2028. The deduction applies only to overtime pay premiums (the amount paid in excess of the taxpayer’s regular rate of pay) and begins to phase out when the taxpayer’s modified adjusted gross income (MAGI) exceeds $150,000 ($300,000 for joint filers). Note that the deduction applies only to federally required overtime under FLSA (Section 7), not to enhanced state overtime rules or those negotiated under collective bargaining agreements.

For Employers:

Employers will need to track and separately report qualified overtime compensation on employee W-2s, which will require updating reporting systems.

Takeaways for Breweries and Distilleries

The new tax rules for tips and overtime under the One Big Beautiful Bill Act may provide significant benefits for employees of breweries and distilleries. Brewery and distillery employers and managers will need to update reporting and payroll systems to reflect the requirements of the new laws. Further IRS guidance on these provisions is expected by the end of the year. Meanwhile, please don’t hesitate to reach out to our experts at RBT CPAs with any questions about the recent tax law changes. As always, our team is here to support all of your business’s accounting, tax, audit, and advisory needs. Give us a call today to find out how we can be Remarkably Better Together.

As anyone in the alcoholic beverage space is aware, societal and generational trends are major drivers of consumer behavior and product sales. The last several years have seen a prominent shift in consumer priorities and preferences, especially among younger generations of buyers. This shift is propelled largely by an increased focus on health and mindfulness, a desire for convenience and variety, and the growing influence of digital marketing, among other factors. So, how can alcoholic beverage producers adapt to these changing preferences?

First, let’s look at some of the priorities influencing alcoholic beverage choices in 2025, particularly among younger generations.

Priorities and Factors Driving Consumer Choices in 2025

• Health and wellness
• Convenience
• Mindful drinking
• Sustainability and ingredient transparency
• Innovative and exciting flavors
• Experience-driven offerings
• Social media influence

How to Leverage Changing Consumer Preferences

1. Focus efforts on social media marketing: It’s no secret that younger generations are heavily influenced by internet trends and social media. NIQ, in its analysis of alcoholic beverage trends for 2025, states, “Digital engagement is revolutionizing the beverage industry, reshaping how consumers discover, interact with, and purchase their favorite brands. Social media platforms like Instagram, TikTok, and Pinterest are leading this transformation, serving as hubs for inspiration, education, and commerce.” Brewers and distillers can make the most of digital marketing opportunities by utilizing social media platforms, partnering with social media influencers, and creating shareable brand experiences and stories.
2. Get on the RTD train: Ready-to-drink cocktails continue to grow in popularity, as younger consumers seek convenience and exciting new flavor profiles. NIQ reports, “With strong growth between 4% and 5% YoY for the past 4 years, RTD now makes up 12% share of Total Alcohol dollar sales. Convenience, versatility, and innovation are driving factors behind this trend, as consumers increasingly gravitate toward pre-mixed beverages that offer high-quality taste without the need for preparation.”
3. Consider health-conscious consumers: Younger generations are increasingly prioritizing moderation and mindfulness in their drinking habits, due to a growing focus on health and wellness. Research and Markets reports, “As health-conscious consumers are focusing on wellness, the demand for low-alcohol, lower-calorie, and alcohol-free beverages has increased…These options appeal to people who want to indulge in the social benefits of drinking without sacrificing their health objectives.” Alcoholic beverage producers can adapt to these shifting consumer preferences by offering healthier or low/no-alcohol options alongside their traditional offerings.
4. Focus on experiences: Though many young people are leaning towards moderation, many are still interested in the social aspect of drinking. Interactive or immersive experiences can make your brewery or distillery more appealing to younger consumers. Entertainment such as games and live music, unique food options, special events, and interactive elements such as self-pour stations all make for a more memorable guest experience.
5. Lean into sustainable practices and ingredient transparency: Many consumers, particularly members of younger generations, continue to prioritize sustainability and transparent ingredient sourcing in 2025. OhBEV, in its 2025 Trends and Forecast report, states, “From water conservation in beer brewing to solar-powered distilleries for whiskey, meaningful environmental initiatives resonate deeply with Gen Z and Millennials. Storytelling around farmland stewardship, carbon neutrality, or local sourcing is increasingly vital.”

Potential Tax Savings When You Innovate

 Adapting your business to changing consumer preferences not only encourages growth, but it may also save you on taxes. For example, if you choose to develop new products or flavors to meet shifting demand, you may be eligible for federal research and development tax credits. Some examples of activities that may qualify for R&D credits are: developing new products, updating fermentation techniques, experimenting with new ingredients, creating new flavors, and improving production processes.

For more information on tax-saving opportunities—or for any of your accounting, advisory, tax, and audit needs—don’t hesitate to reach out to our experts at RBT CPAs. Contact us today to find out how we can be Remarkably Better Together.

In today’s world, nearly anything can be delivered directly to our front doorsteps. With a few clicks of a button, groceries, household items, furniture, prescriptions, and electronics are shipped straight to customers via e-commerce platforms. Beginning in 2020, COVID-19 lockdowns gave rise to huge surges in online ordering and delivery services, as people searched for ways to stock their homes without needing to travel beyond their front doors. As consumer demand has increased, alcoholic beverage companies have also jumped on the direct-to-consumer opportunity. In 2024—thanks largely to the advocacy of organizations like the NYS Distillers Guild—legislation allowing New York’s spirits, mead, and cider manufacturers to ship products directly to customers was passed, significantly expanding opportunities and markets for the state’s craft beverage producers.

Let’s explore some of the details of direct-to-consumer (DTC) shipping for alcoholic beverage producers in New York, as well as some of the regulations producers must follow when engaging in DTC sales.

Background of DTC Shipping in New York

Though New York wineries have been allowed to partake in DTC sales for several years now, the opportunity was not available to other alcoholic beverage manufacturers prior to COVID-19. As a way of supporting craft beverage producers during the pandemic lockdowns, New York temporarily expanded direct-to-consumer shipping privileges to the cider, mead, and spirits industries. In November 2024, New York enacted legislation permanently allowing these producers to ship products to consumers in New York State. As of November, New York manufacturers can ship “up to 36 cases (no more than 9 liters per case) of wine, distilled spirits, cider, mead, and braggot per year directly to a New York resident for personal use” (New York State Liquor Authority).

Benefits of the DTC Model

Since the pandemic, direct-to-consumer models have continued to grow in popularity as more and more people seek convenience through online ordering. Many people today would rather order alcohol directly to their doors than make a stop at the liquor store. As such, the demand for DTC alcohol has increased significantly. This creates the potential for growth for many of New York’s alcoholic beverage manufacturers. One of the main benefits of direct-to-consumer (DTC) shipping is the ability to bypass retail distribution models. By skipping the middleman and selling directly to customers online, producers can reach a wider range of audiences and expand profits through new revenue streams.

Another potential benefit of the DTC model is the opportunity to form deeper connections with customers and create personalized customer experiences. E-commerce platforms allow for increased customer engagement and also enable sellers to collect valuable data. This data can then be used to create customized shopping experiences for buyers, tailored to their individual needs and preferences. Customer data can also offer insights into consumer trends and behaviors, information that can help guide business decisions.

Regulations and Requirements

It’s important that manufacturers of alcoholic beverages are aware of the legal requirements surrounding direct-to-consumer shipping in New York State. For a complete list of requirements, see the New York State Liquor Authority website. Some of the requirements for manufacturers shipping alcoholic beverages in New York State include:

• Manufacturers must require buyers to provide proof they are at least 21, and that the alcohol is for personal use (not resale).
• Shipping containers used to deliver alcohol must be conspicuously labeled using specific text provided by the NYS Liquor Authority (found here).
• Manufacturers must maintain records of all DTC shipments for a minimum of three years and produce them upon request of the Liquor Authority or the NYS Department of Taxation and Finance.
• Manufacturers must permit the SLA or DTF to perform audits upon request.

New York manufacturers with the following licenses are permitted to engage in direct-to-consumer sales without needing to apply for a separate license or permit: cider producers, farm cideries, micro-distilleries, micro-rectifiers, farm distilleries, fruit brandy producers, mead producers, farm meaderies, farm wineries, micro-farm wineries, and wineries.

How We Can Help

The direct-to-consumer model presents significant opportunities for growth for New York’s craft beverage industry. While you take advantage of the DTC opportunities available in our state, please know that RBT CPAs is here to support all of your accounting, tax, audit, and advisory needs. Give us a call today to find out how we can be Remarkably Better Together.

As a business owner, you wear a lot of hats from CEO and CFO to HR expert, technology guru, and more – and that’s in addition to your brewery-distillery-distributor-focused responsibilities. Over time, especially as your business grows, you may find yourself wanting or needing deeper expertise in a particular area. While a full-time staff member may not be warranted, you may want to explore opportunities to outsource work, engage professionals for a defined number of hours a month, or simply have resources lined up for you to access as needed or on demand.

For example, have you been wondering whether you are effectively using financial data to identify opportunities or recognize red flags for your business? Do you think about possibly adopting a retirement or other benefit plan to strengthen your employee value proposition but don’t know where to start? Do you know what options are available for your business over the long-term and how this intersects with your personal financial legacy?

Here’s how some experts can support you and your business on a part-time, full-time, outsourced, or contract basis…

Accountant: Prepares and examines financial records, including accurate, complete, and compliant financial statements. Helps you understand, meet, and navigate tax obligations and liabilities while maximizing tax opportunities. Completes tax filings. Provides assistance with banking, finance, financial technology, and more.

Auditor: Reviews and verifies the accuracy of financial records and accounting methods to ensure tax compliance and protect against financial crimes (i.e., embezzlement and fraud). Recommends best-in-class practices, processes, and systems to protect the financial integrity of the business, benefit plans, and more.

Benefits administrator: Designs benefit plans (i.e., retirement, health, life insurance, disability, and more); provides administration, actuarial, and recordkeeping services; performs compliance services; and educates employees.

Bookkeeper: Records and maintains all financial transactions for your business; manages payroll; processes invoices; produces financial reports; automates transactions; and organizes data.

Chief Financial Officer: Manages financial operations and serves as a senior business advisor. Develops, monitors, and updates financial plans and goals. Advises on taxation, investing, and cash flow management. Analyzes strengths, weaknesses, and course corrections. Identifies opportunities and strategic financial moves based on your industry, geographic location, competitive environment, and national trends, and a deep understanding of economics, finance, business, and compliance.

Estate planner: A financial expert who creates a plan defining your personal wishes and wealth legacy. Ensures your wishes are documented and legally protected while helping you employ financial vehicles and strategies (i.e., trusts and gifting) so more of your wealth goes to the people and causes you care about rather than taxes.

Human resources expert: Someone with expansive knowledge of the people side of running a business, so you have the processes, plans, and infrastructure to attract and retain the right talent to promote business success. Includes everything involved with recruiting, hiring, and onboarding; benefits and compensation; legal compliance; engagement; training and development; performance management; succession planning; diversity, equity, and inclusion; retention; and more.

Valuation expert: Provides the information you need to understand your business’s worth, potential, and options, so you can make informed decisions to help you meet future goals. Conducts professional business valuations, intangible asset appraisals, and financial consulting to define, enhance, and protect business value. Includes business valuation, forensic accounting, equipment appraisal, appraisal review, economic damages, and business planning.

If you are interested in learning how any, some, or all of these experts can help your business without adding to the headcount, give RBT CPAs a call. Our team of world-class professionals and those at our affiliates – Advent Valuation Advisors; Spectrum Pension & Compensation; and Visions Human Resource Services – can help you assess your needs, explore options, and design an engagement that fits your business and budget, proving we can be Remarkably Better Together.

RBT CPAs never offshores work outside of the U.S., so you always know who is handling your financial information.

Sustainability is a way of operating to minimize negative impacts on the environment and use resources more effectively. Not only can it be a brand enhancer, as many potential customers feel better about doing business with companies that operate sustainably, but it can also save you money by eliminating waste and effectively using resources.

Every stage of brewing presents opportunities to operate more sustainably and, possibly, save money at the same time. From the water, energy, and other resources used for each batch of brew to sourcing, packaging, and transporting your product – not to mention all of the resources used when running a facility – there are numerous ways to reduce pollution and waste, promote energy efficiency, and lower greenhouse gas emissions.

An easy place to start is with your facility. Explore using LED lighting. Install energy-efficient windows and doors. Motion control lights, touchless taps in sinks, low-flow toilets, autoflush sensors, and hand dryers in bathrooms can help save energy and water. Even when buying paint, furniture, or cleaning products, there are eco-friendly options available. When it comes to the power you need for your entire operation, you may want to consider using renewable energy like solar or wind.

As for the actual brewing process, look for sustainable options at each stage. Starting with sourcing, if possible, grow some of your own ingredients (eliminating shipping and packaging costs); opt for organic; and source locally to improve freshness and reduce shipping and storage costs.

Turning to production, there are numerous to minimize waste and recycle. Reduce water and electricity consumption with retrofits or upgrades to new energy-efficient, automated equipment. Inspect equipment regularly for leaks and maintenance needs. Explore closed-loop water and cooling systems; heat exchangers to capture and reuse heat; and more.

When it comes to packaging, explore using recyclable or biodegradable materials. Not only is it environmentally friendly, but it also puts your business in a better position should legislation on reducing plastic and other materials in packaging come to fruition.

As for transportation, you may be able to reduce associated fees and carbon emissions by sourcing locally. If you have business vehicles, there are tax incentives available to go electric.

Finally, sustainability efforts offer ways to strengthen engagement with your employees and the surrounding community. Involve employees in your efforts by asking for their ideas and suggestions. Show you care about their development by paying for them to get sustainability certifications. Engage with the community by supporting and donating to environmental causes. Be a good neighbor and partner with local farms that can use wastewater and spent grains to feed livestock or for composting (you may even be able to charge a small fee).

Government resources are available to support your sustainability efforts. The U.S. Environmental Protection Agency administers the Energy Star program.  NYSERDA, the New York Energy Research and Development Authority, offers services and resources to help you identify energy-saving opportunities, map out a strategy, and even find equipment. Both can also help direct you to related tax incentives.

For example, under Section 179, you can write off the purchase price of machinery, software, and vehicles. Plus there’s a 60% bonus depreciation that allows you to deduct qualifying costs for equipment placed into service in 2024. If you do research and development related to water recycling and waste management, you may qualify for an R&D tax credit. New York sales tax exemptions may also be available on certain purchases.

While you focus on the many aspects of running a successful brewery and distillery business, you can count on RBT CPAs to be your trusted advisor for accounting, audits, taxes, and more. Learn how we can be Remarkably Better Together by contacting us today.

RBT CPAs never offshore work outside of the U.S., so you always know who is handling your financial information.

Nothing screams “summer” like a cold brew or cocktail and…

Finish that sentence with the right marketing plan, events, and special touches to make the most of the 2024 summer season.

Here are some ideas to help get you started:

• If you’re bringing on the summer brew – typically a lighter 4% to 5% AC for easy drinking, pale ales, and fruit beers – have a naming contest, tasting, and launch party.
• Create an outdoor seating area. Take advantage of the local view or landscape or build a space with a summer theme where people want to come, relax, and have fun.
• Add music and entertainment. Feature local bands or create a summer playlist. Get guests moving with line dancing lessons. Have a weekly summer movie night – think Jaws, Caddyshack, and Dirty Dancing. Invite the local ice cream or hot dog truck to stop by periodically.
• Don’t forget the games – trivia, cornhole, volleyball, and more.
• Summer-up your menu. Get creative with drinks and their names. Have fun with charcuterie boards and grazing tables. Incorporate local produce into your menu. Serve drinks in small coolers and snacks in mini picnic baskets.
• Update your décor to make it feel like summer. Find what works with your brand. Explore flowers, scented candles, lighting, fun seating, misting fans, tabletop firepits with smores kits, and anything Hawaiian.
• Support local businesses. Incorporate local business products into your menu and décor. If you’re hosting contests, offer prizes from local businesses to build goodwill and a sense of community.
• Hold a fundraiser. Pick a local cause or, even better, a couple of different ones.
• Invite the dog! Whether you make it an everyday thing or a special event, allow paying customers to bring their furry friend and treat them to something on a dog-friendly menu item.
• Create a club, with free tastings, a birthday drink, and even a personalized glass that can be used for discounted drinks.
• Host a tour, pub crawl, brew festival, or scavenger hunt. Join together with other local brewers and restaurants to create an “experience” or “event.”
• Put your feelers out for local farmers markets, community tag sales, county fairs, and other summer events that may need sponsors and vendors.

As you focus on making the most of the upcoming busy season, remember, RBT CPAs can help lighten your load by handling all of your accounting, audit, advising, and tax needs. Find out how we can be Remarkably Better Together. Give us a call or drop us a line.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial information.

Under the Corporate Transparency Act (CTA), certain businesses formed or operating in the U.S. must report information about their beneficial owners – the people who own or control them – to the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). This applies to most companies, including small businesses.

While it sounds like the stuff spy movies are made of, FinCEN Beneficial Ownership Information (BOI) reporting is real and is something businesses need to take seriously.

The U.S. adopted the law to protect against money laundering and related crimes while promoting national security. The willful failure to comply or the willful attempt to provide fraudulent information can result in fines of up to $591 each day a violation continues and criminal prosecution (imprisonment for up to 2 years and/or up to a $10,000 fine).

Earlier this year, the law was challenged in the Northern District of Alabama. The court ruled it exceeds Congress’ power and can’t be enforced against the plaintiffs (Isaac Winkles and companies for which he is the beneficial owner; the National Small Business Association, and its members. This is currently under appeal. For now, any covered entity other than those named in the suit are required to comply.

So, what is beneficial ownership information (BOI)? BOI is information about individuals who directly or indirectly own or control a company.

What companies are required to report BOI? According to the U.S. Chamber of Commerce, a reporting company is any privately held company – domestic or foreign – registered to conduct business in the U.S.

There is a list of 23 entity types that are exempt from reporting, including nonprofits, government authorities, publicly traded companies, banks/credit unions, and such. If your business is not considered exempt and it is a domestic or foreign reporting company, filing requirements and deadlines apply.

A business created or registered before January 1, 2024, has until January 1, 2025, to file. Otherwise, the business must file within 90 calendar days of receipt of the company’s creation or registration if it’s before January 1, 2025. Thereafter, the filing must occur within 30 days of creation/registration.

Full details and resources are available on the FinCEN website.  Go there to file BOI information, see Frequently Asked Questions, and access resources for small businesses including a Compliance Guide.

As you take care of the many aspects of running a business – including BOI filings (if required), please remember RBT CPAs is available to meet all of your accounting, tax, audit, and advisory needs. We’ve been proudly serving municipalities, businesses, non-profits, and individuals in the Hudson Valley for over 50 years. Please don’t hesitate to give us a call and find out how we can be Remarkably Better Together.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.

Note: RBT CPAs is not a law firm and the information provided herein should not be taken as advice. Any questions should be directed to your legal counsel.