IT-636: Alcoholic Beverages Production Credit (2024)

Who files this form

Use Form IT-636 to claim the alcoholic beverage production credit as an individual, including a sole proprietor, a partnership, or a fiduciary of an estate or trust. Partners, New York S corporation shareholders, and beneficiaries receiving a share of the credit also use this form.

For a producer claiming credit it earned, Schedule A requires registration as a distributor under Tax Law Article 18. It also asks whether production in New York State during the tax year was within these limits:

• Beer: 60 million gallons or less.
• Cider: 60 million gallons or less.
• Wine: 20 million gallons or less.
• Liquor: 800,000 gallons or less.

If you are not registered, or answer No to all four production questions, the form says you do not qualify. Complete the production schedule for each beverage for which you answer Yes.

What you'll need

Have the information needed for the schedules that apply to you:

• Your name and identifying number as shown on your return, and your tax period’s beginning and ending dates.
• For a producer: the registered distributor’s name, EIN, and State Liquor Authority (SLA) license number.
• Production facilities’ physical addresses and production totals from Form(s) MT-456. Beer, cider, and wine schedules use gallons. The liquor schedule uses liters, separated by alcohol content.
• For a share of credit received from an entity: its name, entity type, EIN, and your share of the credit by beverage category.
• For an estate or trust: beneficiaries’ names as shown on Form IT-205, Schedule C, their identifying numbers, and their allocated credit amounts.

The liquor schedule also calls for amounts from the Liquor worksheet in the instructions. That worksheet is not included in the supplied text.

How to file

Submit Form IT-636 with Form IT-201, IT-203, IT-204, or IT-205, as applicable.

All filers must enter their tax period and complete line A. If you earned the credit directly and answer Yes on line A:

• Individual or sole proprietor: Complete Schedule A, the applicable production schedules B through E, and Schedules F and I.
• Partnership: Complete Schedule A and the applicable production schedules B through E.
• Fiduciary: Complete Schedule A, the applicable production schedules B through E, and Schedules H and I.

If you answer No on line A because you are receiving a share of the credit, complete Schedules G and I. A fiduciary must also complete Schedule H.

The supplied form does not give a mailing address or e-filing directions.

Common mistakes

• Leaving line A or the tax period blank. The form requires all filers to complete them.
• Continuing after a disqualifying answer in Schedule A. Stop if you are not a registered distributor or answer No to all four production questions.
• Completing producer schedules when line A is No. The form says not to complete Schedules A, B, C, D, E, or F in that case.
• Skipping Schedule H for an estate or trust. The form says an estate or trust must complete it.
• Submitting IT-636 without the accompanying return. The form directs you to submit it with IT-201, IT-203, IT-204, or IT-205.

Questions people ask

Can I claim a share of the credit received from another entity?

Yes. Schedule G covers shares received as a partner in a partnership, a shareholder of a New York S corporation, or a beneficiary of an estate or trust.

Which schedule covers each beverage?

Schedule B covers beer, Schedule C covers cider, Schedule D covers wine, and Schedule E covers liquor produced in New York State during the tax year.

What rates apply to the first 500,000 gallons of beer, cider, or wine?

The form uses $0.14 per gallon for beer and cider and $0.30 per gallon for wine, up to the first 500,000 gallons of each.

What if I need more space for production facilities?

The production schedules say to submit additional forms if necessary. They include fields for totals carried over from those additional forms.

Official sources

• https://www.tax.ny.gov/pdf/2024/inc/it636_2024_fill_in.pdf