Lawmakers push changes to Pennsylvania brewer tax credit
Bill would extend the malt beverage tax credit carryforward from three to five years and permit credit sales among Pennsylvania breweries.
State Rep. Ana T. Tiburcio, D-Lehigh, said she and a group of other representatives have introduced a bill to make it easier for small Pennsylvania craft breweries to get up and running.
Tiburcio is co-sponsoring the bill with Reps. Steve Samuelson, D-Northampton, Dan Deasy, D-Allegheny, and Rob Matzie, D-Beaver.
The malt beverage tax credit program allows breweries that invest in their facility or equipment to claim a tax credit equal to the amount of capital expenditures they incurred, up to a maximum of $200,000.
Currently, however, these tax credits can be carried forward for just three years. Credits may not be sold to other Pennsylvania breweries.
This legislation would extend the carry forward period of the malt beverage tax credit to five years and let tax credit recipients sell their credits to other Pennsylvania breweries.
“Pennsylvania is home to hundreds of breweries of all sizes,” said Tiburcio. “In the craft beer industry, we rank second both in production and economic impact. This bill would expand the state’s malt beverage tax credit program, enabling more of our craft breweries to get the help when they need it the most.”
Tiburcio said because the tax credit is not refundable, can’t be sold, and can only be carried forward for three years, many smaller breweries can’t use the full credit amount.
That means a new brewery could easily spend several hundred thousand dollars to become operational but only be able to use a portion of the credit.”
“Pennsylvania’s craft breweries have made investments to build something lasting and should continue to benefit from a tax credit designed to support that commitment,” said Deasy, who is majority chair of the House Liquor Control Committee. “Extending the carry-forward period and allowing credits to be sold between breweries are commonsense fixes that will make a real difference for small businesses that need it most.”
The bill will be referred to the House Liquor Control Committee for consideration.