The Tax Cuts and Jobs Act enacted in December 2017 has significantly impacted the alcohol industry, including changes to federal (TTB) excise tax rates, use of tax credits, and new taxpayer definitions. While federal wine excise tax rates have been lowered and expanded, wineries may only use those credits on wine they produce. If you are a producing winery that sells or purchases bulk wine, or stores your wine in bond at other bonded locations, you need to understand how to successfully navigate the TTB wine excise tax changes and TTB procedures for bonded wine transfers. For Oregon wineries that qualify for the OLCC small producer privilege tax exemption, and who purchase bulk wine in bond from another winery, this means an additional evaluation is required to determine how and when to remove wine from bond and pay federal and state taxes.
Participants gained general guidance on how the act likely impacts their winery, and steps to take to comply with the act and related TTB guidance to ensure full access to eligible tax credits. Topics included:
- New TTB excise tax rates
- What activities qualify as "production"
- Changes to TTB taxpayer definitions, including single taxpayer and controlled groups
- TTP "Alternate Procedure" for wine transfers in bond
- Impacts of TTB tax transfers on OLCC privilege taxes