Posted April 9, 2018
Province highlights new tax credit changes for small brewers
Toronto – Ontario’s Ministry of Finance today highlighted proposed changes to the Small Beer Manufacturers’ Tax Credit included in the 2018 Ontario Budget.
According to the announcement, proposed changes to the Small Beer Manufacturers’ Tax Credit includes increasing the amount of support for brewers with taxable sales between 75,000 and 200,000 hectolitres, and increasing the worldwide production eligibility for the credit from 150,000 to 300,000 hectolitres.
These changes could allow more breweries to expand their operations, create jobs and fuel economic growth. If the budget is passed, the new changes would come into effect retroactively, starting March 1, 2018.
“The OCB is committed to further strengthening Ontario’s reputation as a centre of craft brewing excellence and today’s announcement is a critical step on that path,” said Scott Simmons, President, Ontario Craft Brewers.
He continues, “we have already seen the positive impact of ongoing government commitment to this industry with 250 independent craft breweries now open and growing in over a hundred communities, generating thousands of jobs and an economic impact in all corners of the province. The new supports announced today will certainly help accelerate that growth. It is a great day for the craft beer industry and a great day for Ontarians who enjoy locally made craft beer,”
A day prior to this announcement, Muskoka Brewery in Bracebridge explained that the proposed changes to the Small Beer Manufacturers’ Tax Credit is allowing them a $5 million brewery expansion.
This renewed tax credit isn’t just good for Muskoka Brewery, it’s good for Ontario craft beer. As a pioneer in the industry, we know there are significant hurdles to reach profitability,” says Todd Lewin, president, Muskoka Brewery. “This improved tax credit will remove a major barrier to growth and help small breweries get over significant hurdles.”
The Muskoka Brewery expansion – also funded in party by the Ministry of Economic Development – will increase the brewery’s production capacity, help expand their tap room and retail store operations, and allow for the deployment of new technologies and equipment.