Craft brewery credits and incentives cheat sheet

In early 2016 The Brewers Association, a trade association representing small and independent American craft brewers, released data showing that there are more craft breweries than ever before. Small and inde­pendent craft brewers represented a 12 percent market share of the overall beer industry. Craft brewery projects can require a significant capital investment. Local government agencies are interested in support­ing these significant investments. Baker Tilly may be able to help you reduce the amount of owner’s equity required for the project and close financing gaps. Our transaction specialists stand ready to optimize your capital stack by leveraging tax credits and incentives, negotiated incentives, and other loan programs to minimize equity requirements.

"Every year, the federal, state, and local governments in the United States invest $170 billion into businesses creating economic impacts by making capital investments, generating taxes, and hiring employees."

Navigating the options – federal, state, and local programs

Every year, federal, state, and local governments in the United States invest billions of dollars into private businesses – making these governments, collectively, one of the world’s largest investors. The economic development programs used for these investments are targeted at businesses which create economic impacts for activities like building, hiring people, and adding taxable sales. Programs can provide incentives which may include: property tax abatements, tax increment financing, sales tax rebates and financing, job creation tax credits, façade improvement grants and access to low/no-interest financing.

Project considerations

Depending on the scope of the project, your business could benefit from these programs to assist with construction of a new facility, remodeling an existing facility, or financing equipment. We can help you evaluate opportunities to benefit from economic development programs by learning about your project.

  • What is the status of the project?
  • Do you have a preliminary expenditure budget?
  • How are you financing your expenditures?
  • How many employees do you anticipate hiring?
  • Are you considering multiple locations for the project?
  • Have you had any discussions with government entities about permitting requirements?
  • What is your desired timing for the project?

Many credit and incentive programs continue to be formed, and existing programs refunded and expanded as communities continue to compete for economic development. Baker Tilly has provided advisory services to more than $2 billion of transactions using Tax Increment Financing, New Markets Tax Credits, property tax abatements, sales tax incentives, job creation tax credits, economic development grants, and low interest financing. With a deep understanding of the current market, and the experience to effectively navigate your options, Baker Tilly can identify, structure, and negotiate an incentive package that maximizes your value and achieves your goals.

For more information on this topic, or to learn how Baker Tilly craft specialists can help, contact our team.