What are the rules for transferring small domestic producers tax credit?
Many small wine producers with limited space at their own wineries elect to transfer wine to other bonded wine premises (often commercial bonded wine cellars, or “BWCs”) for storage and distribution. Small wineries often pay the excise tax on their wine before shipping it to a BWC, in order to make use of the Small Domestic Producer’s Tax Credit. Under certain conditions, small wine producers have the option of transferring the use of their credit to other bonded wine premises, to be used when their wine is removed for consumption or sale (tax paid).
