CASE STUDY


BREWERY

HIGHLIGHTS

  • BREWERY INDUSTRY
  • LIFETIME TAX SAVINGS
    FROM THE R&D CREDIT OF
    OVER $550,000
  • R&D ACTIVITY FOR NEW
    BREWS DROVE COMPANY
    GROWTH FROM $10M
    TO $70M

Established in 1995, this $70M brewing company produces over 260,000 barrels of beer annually and currently sells in over 40 U.S. states plus Washington D.C. A restaurant has been added along with an Inn, which was built to allow customers to explore the brewpub and production brewery.

R&D QUALIFICATION

A brewery is not what a person thinks of when they hear “R&D”. The challenge for this brewery was to be able to identify the research activities from everyday brewing production. The company thought they had R&D taking place, but wasn’t sure. For this brewery, R&D involved creating new brews. Typically, gluten-free beers are generic white lagers that lack the exotic flavor and aroma of popular microbrewery beers. The brewery performed research and development in an effort to satisfy the gluten free beer connoisseurs, which resulted in experimentation and testing of various new formulations and brewing processes.

WHY Source Advisors

For this specialty brewing company to qualify for an R&D tax credit, they needed a team that would invest the time and resources required to understand the complexity of the brewing process to maximize their R&D tax credit potential. With the experience of having performed more than 2,200 R&D studies resulting in federal & state tax savings for their clients totaling over $1 billion, the Source Advisors tax credit team was the clear choice.

THE RESULTS SPEAK FOR THEMSELVES

Source Advisors began conducting R&D tax credit studies for the company when the ompany’s revenues were $10 million. For nearly a decade, the company has benefited from R&D credits averaging $65,000 annually. This annual $65,000 offset in taxes has allowed the company to continue investing in the development of additional brews and reaching $70 million in sales. The company’s ability to grow at this pace is, in large part, driven by sales of its new products.

HIGHLIGHTS

  • BREWERY INDUSTRY
  • LIFETIME TAX SAVINGS
    FROM THE R&D CREDIT OF
    OVER $550,000
  • R&D ACTIVITY FOR NEW
    BREWS DROVE COMPANY
    GROWTH FROM $10M
    TO $70M