As you continue to grow your brewery or distillery, several state and federal tax incentives are available to help you offset the cost of investments like machinery upgrades, facility improvements, and new product development. Taking advantage of available credits and deductions can significantly improve your cash flow and free up capital for future growth. Here are three tax-saving strategies you should consider as an alcoholic beverage producer in New York State.

1. New York State Investment Tax Credit

The New York State Investment Tax Credit (ITC) can provide valuable tax savings for New York businesses that invest in equipment, machinery, buildings, and other qualifying property used directly in the production of goods—including alcoholic beverages. Breweries, distilleries, and cideries may be eligible for the credit when they place qualifying production assets into service during the tax year. Eligible property may include brewing or distilling equipment, fermentation and storage systems, production machinery, and certain facility improvements used directly in the production process.

2. Qualified Production Property Deductions

The One Big Beautiful Bill Act (OBBBA), enacted in July 2025, both restored 100% bonus depreciation and expanded it to include a new category of assets known as qualified production property (QPP). Eligible businesses can now immediately deduct 100% of the cost of qualifying production facilities rather than depreciating those costs over the traditional 39-year period for nonresidential real property. For breweries, distilleries, and cideries constructing new production facilities or expanding existing operations, the resulting tax savings may significantly improve cash flow.

To be considered production property (QPP), an asset must meet several criteria, the most important of which is that it must be used as an integral part of a “qualified production activity.” A qualified production activity is defined as the manufacturing, production, or refining of a qualified product resulting in a “substantial transformation” of the property comprising the product. The QPP deduction generally applies to new construction, but in some cases may apply to acquired qualified production property.

3. Research and Development Tax Benefits

The OBBBA has also made significant changes to the treatment of domestic research and development (R&D) expenditures. Previously, businesses were required to amortize domestic R&D costs over five years. Under the new law, those expenditures may once again be deducted in full during the year they are incurred. For breweries, distilleries, and cideries, qualifying research activities include developing new flavor varieties, testing alternative ingredients, refining fermentation techniques, improving production efficiency, and experimenting with new formulations.

Planning Ahead with RBT

Whether you are purchasing new brewing or distilling equipment, expanding a production facility, or investing in product development, the current tax landscape offers several opportunities to reduce tax liability and improve cash flow. Reviewing your capital expenditure plans with your RBT accountant can help you maximize available tax benefits while also ensuring compliance with applicable requirements. Contact us today to work with our specialized accounting team and find out how we can be Remarkably Better Together.

This summer, one of the world’s largest sporting events will be arriving on our doorstep, bringing massive crowds to the New York-New Jersey area. The 2026 World Cup will take place across three North American countries from June 11 to July 19, with eight matches—including the final—held at New Jersey’s MetLife Stadium (temporarily branded as New York New Jersey Stadium). The broader New York–New Jersey region is expected to welcome more than 1.2 million visitors, generating an estimated $3.3 billion in economic activity in the area. For breweries and distilleries, this is more than just a spike in foot traffic. The tournament presents a rare opportunity for local businesses to increase sales, expand brand visibility, and connect with new customers. The question is, are you ready to make the most of it? Here are some tips to help you capitalize on the most anticipated regional event of the summer.

Prep Operations and Ramp Up Promotional Activities

You may want to consider stocking up on inventory, extending your operating hours, and/or hiring additional seasonal staff in anticipation of increased regional activity. Hosting watch parties or other World Cup-themed events is one way to attract both visiting fans and locals. Think about offering World Cup-themed menu items, limited-edition beverage flavors, discounts, or giveaways to appeal to fans’ tournament spirit.

Explore Available Resources

Check out the FIFA World Cup 2026^TM New York New Jersey Host Committee Community Engagement Toolkit, a comprehensive guide for local businesses and organizations to leverage the economic opportunities provided by the tournament. You can also subscribe to the NYNJ Host Committee newsletter for updates and opportunities. Additional helpful information can be found in the NYC Small Business Resource Guide for FIFA World Cup 2026™ and the NJ Diverse Business Advisory Council’s World Cup 2026 Reference Guide.

Join The Welcome World Rewards Program

The Welcome World Rewards Program, which launches May 25, is a region-wide economic initiative designed to connect fans of the World Cup with local small businesses through a free mobile app. The purpose of the program is to encourage economic activity throughout communities in New York and New Jersey while providing visitors with an authentic regional experience. The app (which is free for both fans and businesses) allows users to check in with local businesses and earn rewards. The program will even offer the opportunity for up to eight fans to attend the World Cup matches (including the final match) as guests of the NYNJ Host Committee. Businesses can sign up to join here. Enrollment is open on a rolling basis from April 1 through May 15, 2026.

Don’t Drop the Ball This Summer

Major events like the World Cup don’t come around often. This summer, breweries and distilleries in the NY–NJ region have a unique opportunity to expand their reach and visibility on an international stage. Early preparation and strategic marketing will be key to making the most of this heightened exposure. While you focus on preparing for the World Cup, let RBT CPAs take care of your business’s accounting, tax, audit, and advisory needs. Call us today and find out how we can be Remarkably Better Together.

Are you using a modern point-of-sale (POS) system to facilitate sales at your brewery or distillery? If so, are you making the most of your system’s capabilities? Cloud-based POS systems are quickly becoming the norm for the industry and for small businesses in general. In fact, there are modern POS systems designed specifically for the craft beverage industry. Whether you currently utilize a cloud-based POS system or not, let’s talk about some of the ways a modern point-of-sales system can be leveraged to improve your business’s efficiency and profitability.

What’s the point of a POS system?

A point-of-sale (POS) system serves as a central hub for transactions and data within your business, allowing you to manage food orders, payments, invoicing, inventory, sales tracking, staff scheduling, and more, all from a single location. By automating many of these processes, cloud-based POS systems help to improve accuracy, consistency, and efficiency across the board. Beyond helping businesses optimize their everyday operations, modern point-of-sale systems also promote long-term profitability by providing key data and insights for decision-making. Here’s how.

• Product Sales: Not only do POS systems process and record sales automatically, but they also enable you to securely process multiple forms of payment, including cash, card, and mobile payments.
• Orders and Customer Experience: POS systems help facilitate a smooth and efficient ordering experience by updating menus and pricing in real time, communicating orders instantaneously to the kitchen, reducing staff errors, and cutting down on waiting times.
• Staff scheduling: POS systems streamline staff scheduling by creating schedules based on employee availability and staffing needs, helping to prevent both understaffing (which can negatively impact the customer experience) and overstaffing (which can hurt your bottom line).
• Inventory management: POS systems automatically update inventory levels in real time, helping to avoid unexpected stock shortages as well as wasted inventory.
• Sales and profit tracking: By tracking sales data, a POS system provides you with valuable insights regarding your most popular products, peak hours, seasonal trends, and more. POS systems also enable you to track the profitability of different menu items so you can optimize your offerings based on that information.
• Payroll management: A POS system can help to streamline your payroll processes by automating time tracking, tip management, tax calculations, and more.
• Financial statements and reports: POS systems can be integrated with accounting software to generate financial statements and reports.
• Employee management: Beyond staff scheduling and payroll, POS systems can provide you with additional data points and insights that can help you manage employees, such as performance metrics.
• Demand forecasting: POS systems can analyze historical sales data to predict future demand, which can inform decisions related to production, inventory management, staffing needs, pricing, budgeting, cash flow management, and more.
• Customer data and insights: The data collected by POS systems can be used to gain insight into various customer behaviors and purchasing trends. Information for returning customers can also be stored for the purpose of loyalty programs.

Achieve Your Goals with RBT By Your Side

RBT CPAs is here to support you as you incorporate emerging technologies into your business strategy. Beyond supporting your accounting needs, our team can assist you in maximizing cost savings and profitability while helping you reach your long-term business and professional goals. Give us a call today and find out how we can be Remarkably Better Together.

If your New York State business operates as a farm—whether farming is your main line of business or not—you may be eligible for several additional tax credits and exemptions through the state. Below are nine tax incentives for businesses engaged in farming in New York State. For NYS tax purposes, “farming” includes the raising or production of field crops, fruits, vegetables, livestock and livestock products, honey and beeswax, maple syrup, and other agricultural commodities.

1. Alcoholic Beverages Tax Exemption: In New York State, agricultural products used in the production of alcoholic beverages are exempt from alcoholic beverages tax.
2. Sales Tax Exemptions and Refunds: Farm businesses in NYS are exempt from paying state and local sales and use taxes for certain purchases. These purchases include farm machinery, equipment, supplies, computers, certain vehicles, building materials, certain services, and utilities used in farm production or operation. Farms can also apply for a refund of sales tax paid on motor fuel and highway diesel motor fuel used in farm production or operation.
3. Farm Building Exemption: New York State’s Real Property Tax Law provides a ten-year property tax exemption for newly constructed or reconstructed agricultural structures.
4. Farm Workforce Retention Credit: Farm employers and owners of farm employers with an eligible farm employee (employed at least 500 hours) may qualify for a credit of $1,200 per employee.
5. Investment Tax Credit: Eligible farm businesses that place qualified property (i.e., machinery, buildings, or equipment) into service during the tax year may be able to claim 20% of the cost of the property.
6. Excelsior Job Program Tax Credits: Agricultural operations in New York that create at least five net new jobs may be eligible for Excelsior jobs tax credits, investment tax credits, research and development tax credits, real property tax credits, and child care services tax credits through the Excelsior Jobs Program.
7. Farm Employer Overtime Credit: Eligible farm businesses that pay a farm employee overtime may be eligible for a tax credit.
8. Farm Donations to Food Pantries Credit: Farm businesses that make qualified donations to an eligible food pantry are entitled to a tax credit equal to 25% of the fair market value of the donation.
9. Farmers’ School Tax Credit: Farm businesses that pay school district property taxes on qualified agricultural property are eligible for a tax credit. The amount of the credit is dependent on the number of qualified acres and the amount of school district property taxes paid.

Questions?

If you’re wondering whether your brewery or distillery qualifies for these or other state or federal tax incentives, please don’t hesitate to reach out to our team at RBT CPAs. RBT is here to make sure you make the most of available tax-saving opportunities. Call us today to learn more and find out how we can be Remarkably Better Together.

The IRS has recently issued new guidance related to the reporting requirements for overtime wages and tips. Here is what employers need to know to stay compliant with the new regulations.

As a reminder, below is a brief summary of the new deductions for tips and overtime pay.

Tip Deduction

• Deduction of up to $25,000 per year per person for qualified tips.
• Applies to tax years 2025-2028.
• Available to individuals in qualifying tipped occupations.
• Limited to tips voluntarily paid by customers, including tips shared through pooling arrangements.
• Begins to phase out when the taxpayer’s modified adjusted gross income (MAGI) exceeds $150,000.

Overtime Deduction

• Deduction of up to $12,500 per year per person for qualified overtime compensation.
• Applies to tax years 2025-2028.
• “Qualified overtime compensation” is defined as the “half” portion of overtime pay required under the Fair Labor Standards Act (1.5 times an employee’s regular pay for all hours worked over 40 in a workweek). Anything beyond the half (i.e., double time or more) is not eligible for the deduction.
• Begins to phase out for taxpayers with a modified adjusted gross income (MAGI) above $150,000.

Most Recent Reporting Guidance for 2025-2026

• W-2s and 1099s for 2025 will not be updated to account for the changes under the One Big Beautiful Bill Act. Employers should continue using the current W-2 and 1099 forms for 2025 returns.
• Per IRS Notice 2025-62, the IRS is providing penalty relief for tip and overtime information reporting for tax year 2025. This means that employers will not be penalized for failing to provide a separate accounting of cash tips or qualified overtime compensation for 2025.
• While not legally required, employers are encouraged to provide employees with a separate accounting of cash tips (and occupation codes) and overtime compensation earned in 2025, so that employees can claim these deductions. Tip amounts can be provided to employees through an online portal, additional written statements, or other secure methods, while overtime compensation amounts can be provided in Box 14 of the employee’s W-2.
• Beginning in 2026, employers will be required to file information returns and provide employees with separate accountings of cash tips (as well as the occupation of the recipient) and qualified overtime pay. Employers should monitor IRS guidance for new or revised forms and reporting procedures for 2026.
• Employers should coordinate with payroll providers and ensure payroll systems are set up to track tips and qualified overtime compensation for each employee for tax year 2026.

A Reminder About Tip Credits

New York State’s tip credit allows hospitality employers in New York to pay tipped workers a rate that’s lower than minimum wage by including tips or a portion of them in wage calculations, as long as the employee’s combined wages plus tips equal at least the full minimum wage for their region. The FICA tip credit is a federal tax credit that allows eligible employers in industries where tipping is customary to reclaim a portion of FICA taxes paid on employee tips.

Contact RBT CPAs for Advice

Our experts at RBT CPAs are here to help breweries, distilleries, and distributors succeed by keeping you updated on the latest tax law updates and employer obligations. Give RBT CPAs a call today to make sure you’re prepared for the upcoming changes. Together, we can be remarkably better.

Are you thinking about selling your brewery or distillery? Selling a business is a lengthy and multifaceted undertaking that requires years of advanced planning. To ensure the process is as smooth, tax-efficient, and successful as possible, you need to begin preparing well ahead of time. Here are some factors you will need to take into account as you prepare to sell your business.

1. Consider the type of buyer you want to sell to

   Two of the most common options for selling a business are (1) selling to a private equity firm and (2) selling to a strategic buyer. Each option has its own advantages and challenges. Private equity firms are investment companies that acquire businesses, increase their value through strategic improvements, and then sell them for a profit. Strategic buyers, on the other hand, are typically companies in the same industry looking to integrate the target company’s assets and resources into their existing business. The choice between selling to a private equity firm or a strategic buyer depends on what kind of involvement you want to retain in the business, your financial goals, and other factors.

2. Review your financial records and compliance

   Your buyer will need to see recent copies of your financial records, including balance sheets, profit and loss statements, cash flow statements, bank statements, and tax returns. They will also need to verify your compliance with relevant local, state, and federal regulations. Make sure that your legal and financial records are up-to-date and sufficiently detailed. Well-organized records help provide a clear picture of your business’s health and instill confidence in your buyer.

3. Consider the structure of your sale

   Business sales can be structured as stock sales or asset sales. The structure of the sale determines how it will be taxed as well as your level of future involvement in the business. In an asset sale, a buyer purchases specific assets from the seller rather than the entire business, with the seller retaining ownership of the business entity. The sale of some types of assets results in ordinary income, while the sale of others results in a capital gain—and so, they are taxed differently. Buyers generally prefer asset sales for liability and tax reasons. A stock sale, on the other hand, is the sale of the business’s shares, which transfers ownership of the entire legal entity to the buyer. Sellers generally prefer stock sales for more favorable tax treatment on their end, as proceeds from stock sales often qualify for capital gains tax rates, which are significantly lower than ordinary income tax rates. You and your buyer will have to come to an agreement as to how you will structure the sale.

4. Have a succession plan in place

   Succession planning is a critical owner responsibility that helps ensure your business continues running smoothly and successfully after you leave. A succession plan provides a roadmap for the future of your business and also earns you the confidence of potential buyers, your employees, customers, and other stakeholders by assuring them that a solid plan is in place for the transition of leadership.

5. Work closely with advisors from the start

   It’s important that you work with reliable advisors who can guide you throughout the sale process. Your team of advisors will likely include legal counsel, an accountant, and other professionals.

Make RBT Part of Your Team

RBT CPAs is here to support and advise you before, during, and after the sale of your brewery or distillery. Our team has been providing top-tier accounting, tax, audit, and advisory services to clients in the Hudson Valley and beyond for over 55 years. Give RBT a call today to find out how we can be Remarkably Better Together.

Budgeting is an essential component of financial planning if you want to set your business up for long-term success. When done properly, a budget serves as a roadmap that business owners can follow for responsible financial management and growth. This article will discuss the benefits of creating a business budget and outline some budgeting basics for breweries and distilleries.

Why You Need a Budget

In an industry subject to variables like fluctuating supply costs and evolving consumer trends, alcoholic beverage producers have even more reason to plan ahead financially.

For brewery and distillery owners, a budget helps to:

• Build a picture of your business’s financial standing.
• Provide insight into sales performance, spending, and profits.
• Prepare your business for future challenges and unexpected events.
• Guide important decisions related to resource allocation, improvements, investments, staffing, debt management, and other key areas.
• Signal when financial or operational adjustments are necessary.

Budgeting Basics

Though the process can vary from business to business, below are the basic steps that can be followed when developing a business budget:

1. Estimate Revenue

To estimate expected revenue for your brewery or distillery for a given period of time, you’ll need to identify all reliable sources of income during that period. Sources of income may include taproom sales, wholesale distribution, event sales, food service, merchandise sales, tours, membership programs, and other revenue streams. You can use historical sales data as a basis for predicting future revenue.

2. Estimate Costs

Next, you’ll want to identify all of the costs you expect to incur over that same time period, including fixed, variable, and one-time expenses. Fixed costs include preset expenses such as rent, mortgage payments, staff salaries, debt payments, software subscriptions, and insurance premiums. Variable costs are subject to change from month to month and include expenses such as raw materials, some utilities, supplies, and shipping costs. One-time expenses are non-recurring costs such as new equipment or vehicle purchases, repair costs, or purchases of real estate.

3. Establish a Contingency Fund

It’s always a good idea to set aside funds within your budget for unpredictable circumstances, such as equipment failures, poor growing seasons, natural disasters, and other unforeseen events. This way, you’ll have some financial cushion to fall back on in the case of an emergency.

4. Determine a Surplus or Deficit

After estimating your revenue and expenses, you can determine whether you will have a budget surplus or deficit. If your estimated income is greater than your estimated expenses, you will have a budget surplus. If your estimated expenses outweigh your estimated income, you will have a deficit. Once you have this information, you can choose how you will either (1) appropriate surplus funds or (2) adjust your revenue and/or expenses to close the budget gap.

5. Review and Adjust the Budget Regularly

Once your budget is created, you should review and reassess it regularly, comparing your actual sales and spending figures against your budgeted amounts. This way, you can catch and address any issues or budget gaps early on. You should be prepared to update and adjust your budget as necessary if issues are identified.

Plan Ahead for Financial Success

Developing a business budget is an integral part of financial planning. For more guidance on how to set your business up for financial success, please don’t hesitate to reach out to RBT CPAs. Our experts provide highly individualized accounting, tax, audit, and advisory services to businesses and organizations in the Hudson Valley and beyond. Contact us today to learn how we can be Remarkably Better Together.

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.

The widely discussed One Big Beautiful Bill, officially signed into law earlier this month, extends many provisions of the Tax Cuts and Jobs Act of 2017 and imposes several new tax and spending policies. The bill’s policies affect nearly every sector of the U.S. economy, impacting individuals, businesses, and organizations in various ways. In general, the bill’s provisions are favorable for many U.S. businesses, extending and creating various business tax incentives, increasing access to capital, and encouraging investment and development. For the purposes of this article, we will explore the provisions of the OBBBA most pertinent to brewers, distillers, and distributors.

Please note that the following are federal provisions, and may apply differently depending on the state in which you operate.

Bonus Depreciation

The OBBBA makes permanent 100% bonus depreciation for qualified property placed in service as of January 19, 2025, reversing the planned phase-down of bonus depreciation. This provision will benefit brewers and distillers investing in new capital equipment, allowing these purchases to be written off immediately.

Depreciation for Qualified Production Property

The OBBBA introduces an elective additional first-year 100% depreciation deduction for “qualified production property,” that is, nonresidential real property used in manufacturing or production activities.

Increased Section 179 Deduction

The Section 179 deduction allows businesses to deduct the full cost of qualifying equipment in the year it is placed into service. The OBBBA increases the Section 179 expensing limit to $2.5 million. This limit is reduced by the amount by which the cost of qualifying property exceeds $4 million (new phasedown threshold).

QBI Deduction

The OBBBA permanently extends the Qualified Business Income (QBI) deduction. This deduction allows eligible taxpayers to deduct up to 20% of their qualified business income. The permanent extension includes additional modifications that expand the phase-in range of the wage and investment limitation and introduce a minimum deduction for businesses in which the taxpayer materially participates.

Immediate R&D Deductions Restored

Among the provisions of the OBBBA are changes to the tax treatment of research and development expenses, designed to encourage domestic research activity. U.S. research and development expenditures, previously required to be amortized over five years, can now be deducted in the year paid. Small businesses averaging $31 million or less in annual gross receipts may elect to apply the change retroactively for tax years beginning after December 31, 2021. All businesses that made domestic R&D expenditures between 2022-2024 may elect to accelerate the remaining deductions for those expenditures over one or two years. Unlike domestic expenditures, foreign R&D costs continue to require a 15‑year amortization under Section 174.

This provision will benefit brewers and distillers investing in research and development activities such as developing new flavors, experimenting with new ingredients, or exploring new production processes.

Removal of Clean Energy Incentives

The OBBBA terminates, phases out, or curtails many clean energy tax incentives, including the energy-efficient commercial buildings deduction, the commercial clean vehicle credit, and certain credits for wind and solar investments.

More to Come

Overall, the One Big Beautiful Bill Act presents expanded opportunities for breweries and distilleries to save on taxes, invest in new equipment, and innovate their products and/or processes. RBT CPAs will continue to provide updated information to our clients as more detailed guidance on the OBBBA is issued. In the meantime, if you have questions regarding the recent tax law changes, please don’t hesitate to reach out to our experts at RBT CPAs. And as always, RBT CPAs is here to support all of your accounting, audit, tax, and advisory needs. Get in touch with us today to find out how we can be Remarkably Better Together.