Amount:

No Fixed Amount

Type of Program:

Tax Credit


Description:

The Small Beer Manufacturers' Tax Credit under the Taxation Act, 2007 provides for a refundable tax credit available to eligible beer manufacturers having worldwide production in the previous year, pursuant to the 2018 Ontario Budget, over 4.9 million litres (49,000 hL) but less than 30 million litres (300,000 hL).

Comments on Funding:

The tax credit amount is determined by an eligible small brewer's eligible sales in the sales year. An eligible small brewer could still receive the tax credit even if its eligible sales for the sales year do not exceed 49,000 hL.

The maximum tax credit available to an eligible small brewer is, pursuant to the 2018 Ontario Budget, $2,449,510 for non‑draft beer and $1,788,010 for draft beer on eligible sales exceeding 49,000 hL and up to and including 200,000 hL.

The tax credit is subject to a phase‑out once eligible sales exceed 75,000 hL and is fully eliminated when eligible sales exceed 200,000 hL in the sales year.


When It Ends:

Ongoing

Deadline:

Rolling Deadline

Eligibility:

A beer manufacturer may qualify in respect of eligible sales of draft and non‑draft beer sold to purchasers in Ontario during a sales year, if it meets certain criteria including:

  •  it has a permanent establishment in Ontario;
  • it cannot be a microbrewer eligible for the reduced beer basic tax rates (to benefit from the reduced beer basic tax rates, one of the requirements is that the microbrewer's worldwide production of beer for the production year must not be more than, pursuant to the 2018 Ontario Budget, 4.9 million litres (49,000 hectolitres (hL)));
  • its worldwide production of beer for the previous production year must be, pursuant to the 2018 Ontario Budget, over 4.9 million litres (49,000 hL) but less than 30 million litres (300,000 hL);
  • its worldwide production of beer was never more than 20 million litres (200,000 hL) in any production year ending before January 1, 2018 and 30 million litres (300,000 hL) in any production year beginning after December 31, 2017,
  • its total eligible sales in any sales year was never more than 20 million litres (200,000 hL).

Applications Steps:

1

Applicants must apply not more than 2 years after the end of the sales year for which it was eligible for the credit.
Provided it qualifies, a beer manufacturer will receive the tax credit as a lump‑sum at the end of the sales year for which it is eligible for the credit. However, it may receive the tax credit in monthly instalments during the sales year if the request is made before the start of the sales year for which it is eligible for the credit.

Other Things to Note:

The current beer basic tax rates will continue to apply until February 28, 2023.

Program Contact:

Beer and Wine Tax

About the author 

Maurice

Maurice (Moe) Muise learned the ins-and-outs of government while an employee of the Government of Canada in Ottawa for 10 years. His current focus is helping small businesses in Ontario to identify and maximize government grants to grow their business.
Click here to learn more about Moe's background and how he can help your business.

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