CT-636: Alcoholic Beverages Production Credit (2024)

Who files this form

Use Form CT-636 to claim the alcoholic beverage production credit as a corporation that earned the credit or as a corporate partner that received a share of the credit from a partnership.

For a corporation claiming the credit it earned, Schedule A requires registration as a distributor under Tax Law Article 18. It also asks whether the corporation produced any of the following in New York State during the tax year:

• 60 million gallons or less of beer.
• 60 million gallons or less of cider.
• 20 million gallons or less of wine.
• 800,000 gallons or less of liquor.

If you are not registered as a distributor, or answer No to all four production questions, the form says you do not qualify for the credit.

Corporate partners claiming a share of a partnership's credit complete Schedule H. C corporation partners also complete Schedules F and G.

What you'll need

Have the following information and forms available, as applicable:

• Your tax period's beginning and ending dates, corporation's legal name, and employer identification number (EIN).
• The registered distributor's name, EIN, and State Liquor Authority (SLA) license number.
• Physical addresses of your production facilities.
• Form(s) MT-456 for production amounts. Schedules B through D ask for gallons of beer, cider, or wine. Schedule E asks for liters of liquor, separated by alcohol content.
• Amounts from lines 5 and 6 of the Liquor worksheet referenced in the instructions, if completing Schedule E.
• Each partnership's name, EIN, and your share of its credit by beverage type, if claiming a partnership credit.
• Tax due before credits, credits claimed before this credit, and minimum tax for Schedule G.

File CT-636 with Form CT-3, CT-3-A, or CT-3-S. New York S corporations also report the specified credit amounts on Form CT-34-SH.

How to file

File Form CT-636 with Form CT-3, CT-3-A, or CT-3-S. The supplied form does not give a mailing address or e-filing instructions.

1. Enter your tax period, legal name, and EIN. All filers must answer line A to identify whether they earned the credit directly or received it through a partnership.
2. C corporations earning the credit: Complete Schedule A, the applicable production schedules B through E, and Schedules F and G.
3. C corporations claiming a partnership share: Complete Schedules F, G, and H.
4. New York S corporations earning the credit: Complete Schedule A and the applicable production schedules B through E. Report the specified credit amounts on Form CT-34-SH.
5. New York S corporations claiming a partnership share: Complete Schedule H and report line 45, columns C through G, on the applicable lines of Form CT-34-SH.

Attach additional forms where needed. In Schedule G, transfer the credit used, refund, and next-year overpayment amounts to your franchise return as directed.

Common mistakes

• Leaving required entries blank: All filers must enter their tax period and complete line A.
• Continuing after an eligibility stop: Schedule A says to stop if you answer No to distributor registration or No to all four production questions.
• Completing Schedules F and G as a New York S corporation: The form specifically says New York S corporations do not complete these schedules.
• Missing the S corporation reporting step: Include the specified production or partnership credit amounts on the applicable lines of Form CT-34-SH.
• Entering a negative credit limitation: If the Schedule G, line 40 calculation is zero or less, enter 0.
• Requesting too large a refund: The refund on line 43 is limited to the unused credit on line 42.

Questions people ask

Which schedule applies to each beverage?

Use Schedule B for beer, Schedule C for cider, Schedule D for wine, and Schedule E for liquor produced in New York State.

Can a corporate partner claim a share of the credit?

Yes. Schedule H collects each partnership's name, EIN, and the partner's share of the credit. C corporation partners also complete Schedules F and G.

What happens to unused credit?

Schedule G provides for unused credit to be refunded or applied as an overpayment to next year's tax. The refund cannot exceed the unused credit on line 42. New York S corporations do not complete Schedule G.

What if I need more space for facilities or partnerships?

The production schedules and Schedule H allow additional forms to be attached. Include the totals from those additional forms where directed.

Official sources

• https://www.tax.ny.gov/pdf/2024/corp/ct636_2024.pdf