Industry Brief  ·  Breweries and Distilleries

Every batch is an experiment.

The federal R&D tax credit rewards recipe and process work your brewery or distillery already does. Most producers never claim it.

$10,000sin credits is common. Up to three prior years can be claimed.
30 minuteson the phone shows whether you qualify and what your credit could be worth.
Every studyincludes audit defense at no added cost.

Why producers qualify

The four-part test
01

New recipes count as R&D

A recipe or process only has to be new to your operation. It does not need to be new to the trade.

02

Every batch has unknowns

Will the yeast finish, and will the flavor hold in the can? Answering that is qualified work.

03

Pilot batches are experimentation

Test batches, sensory panels, and revised recipes satisfy the experimentation test. Your brew log is the evidence.

04

The science is already there

Your process rests on chemistry and microbiology. For producers, the science test is the easy part.

A short study shows which of your batches qualify, and proves it. Read the four-part test in the words of the statute.

What qualifies in practice

Work your operation already does
  • Recipe developmentWorking out a grain bill, hop schedule, botanical blend, or mash bill through trial batches is qualified development.
  • Fermentation trialsTesting yeast strains, temperatures, and schedules to hit attenuation and flavor targets is experimentation on the record.
  • Barrel and aging programsTrialing wood, char, entry proof, and time to reach a target profile is technical iteration that counts.
  • Scale-upTaking a pilot recipe to a production tank raises questions that only trial runs answer. Those runs qualify.
  • Shelf life and stabilityTesting packaging, oxygen pickup, and filtration to keep a product stable in the market is qualified work.
  • Distillation cuts and proofingDeveloping cut points, reflux settings, and proofing methods for a new spirit is experimentation.
  • Packaging and canningAdapting a line to a new format, or solving a foaming or seal problem, is process development.
  • Water and ingredient treatmentAdjusting water chemistry or sourcing an ingredient alternative and testing the result counts.

Where the credit comes from

The expenses that count
01

Production wages

The time your brewers, distillers, and cellar staff spend on trial batches is the largest piece for most producers.

02

Trial ingredients

Grain, hops, botanicals, yeast, and packaging consumed in pilot and test batches can count as supplies.

03

Outside labs and consultants

A share of what you pay U.S. testing labs and process consultants on qualified work counts too.

04

What does not count

Routine production of a settled recipe, taproom operations, and marketing stay out. The study draws that line honestly.

Common questions

Does a new beer or spirit really count as research?

It does when you resolved a technical question to make it. A recipe developed through pilot batches and measured against a target is research under the statute.

We brewed a test batch and dumped it. Does that count?

Yes. A batch that missed is evidence of experimentation. The ingredients and time in it can qualify.

Our recipes are driven by taste. Is that enough?

Taste alone is not the test. Recipes developed against measurable targets such as attenuation or shelf life are. Most producers do both, and the study separates them.

We are a small taproom brewery. Are we too small?

No. The credit has no minimum size. A small producer with a real trial program qualifies on the same terms as a large one.

How far back can we claim?

Up to three prior tax years, by amended return. Credits you never claimed are still there to collect.

What records do we need?

The ones you already keep. Brew logs, batch sheets, lab results, sensory notes, and invoices are the evidence. The study organizes them against the test.

What happens if the return is examined?

The people who wrote the study answer for it. Audit defense is included in every study at no added cost.

Which form does the credit go on?

Form 6765, filed with the return. From there it carries onto Form 3800 as part of the general business credit. The Form 6765 guide and the Form 3800 guide walk a CPA through both.

Thirty minutes shows whether you qualify.

Book a call and bring the person who knows the work. We will cover whether your projects qualify and what a credit could be worth.

Book a call Or write to inquiries@thefoundryfirm.com