Who is eligible for the Small Domestic Producer’s Credit?
Producers of not more than 250,000 gallons of wine are eligible for a credit which lowers the tax due on the first 100,000 gallons of wine taxably removed each calendar year. Non-producing wine premises and companies which produce more than 250,000 gallons per year are generally not eligible to use the Small Domestic Producer’s Credit when making taxable removals from their bonded premises. The exception is when the credit is transferred by an eligible small producer to another taxpayer (a “transferee”), to be used on its behalf. A transferee is often a Bonded Wine Cellar (BWC), but it may be any bonded wine premises.
