Like This Article? Share

What all US wineries need to understand about “produced” and their excise taxes

Since early this year all my posts, videos and trainings have focused on the range of changes affecting US wineries specific to their TTB compliance. These changes resulting from the tax law which went into effect January 1st. One of those key areas for winery management and staff to fully understand is the connection between their "produced by fermentation" activity and payment of their TTB excise taxes.

The gallons that any winery may show on the TTB 5120.17 report on that line which is titled "produced by fermentation" are now tied directly to the gallons a winery will qualify to deduct tax credit off their TTB excise taxes due. Only gallons that a winery has "produced" will qualify for the new levels of tax credit, which start at $1.00 per gallon. 

For US wineries that are making still wine from grapes (or other fruit) there are essentially three "paths to production" that lead to their accurately listing gallons on the "produced by fermentation" line of their TTB 5120.17 reports.

These three scenarios are explained in my next video.

Understanding the gallons your winery "produces by fermentation"