Recent Compliance Changes
The Federal excise tax credits are now permanent per the most recent legislation. Please see information regarding the credit below.
NOTE: THIS INFORMATION ONLY APPLIES IF YOU CHOOSE TO TRANSFER WINES YOU HAVE PRODUCED IN BOND TO VALLEY WINE WAREHOUSE AND TO TRANSFER YOUR EXCISE TAX CREDITS TO VALLEY WINE WAREHOUSE.
With the federal government’s latest revisions to the Internal Revenue Code and the alcohol beverage excise tax provisions, bonded wineries are again able to take excise tax credits and transfer them to H.P.D. Consolidation, Inc. dba Valley Wine Warehouse (“Valley”). For Valley Wine Warehouse to take this credit on your behalf we MUST receive a letter from you authorizing us to take this credit.
As there is a tiered application of the current excise tax credits and the volume limitations, we recommend that bonded wineries transfer their products to Valley tax paid, so as to avoid future complications and TTB audits.
However, if you choose to transfer your wines in bond to Valley and to transfer the tax credits to Valley, then:
- You must prepare and send a letter to Valley using the attached template. Please cut and paste the text on the template, place it on your letterhead, add your winery name and bonded winery number, sign and return it. If the letter is not in the correct format or does not contain the correct information, we may not be able to take the credit until we receive a corrected letter from you.
- You must follow the rules and regulations applicable to any such transfers.
- We can only legally apply the tax credits to wines that a bonded winery has produced itself. As such, any wines that were NOT produced by you, or wines which have been blended with wines that were NOT produced by you, will only be accepted tax paid.
- If you plan to remove more than 30,000 gallons from other bonds than Valley Wine Warehouse during 2021, you must give us an estimate of the amount you plan to remove from other bonds so that we can apply the correct tax rate.
Please be advised that if you authorize us to take these credits and you do not qualify for them, TTB will require repayment of the credit received plus a penalty and interest. Please review the TTB requirements to qualify for these credits and we recommend that you consult a compliance professional if you are not sure whether the winery meets the qualifications.
For us to begin taking the credits on your behalf beginning January 1, 2021 we MUST receive your authorization letter NO LATER THAN JANUARY 25, 2021.
We will begin taking the credit during the tax period that we receive your letter so you must email it to our Compliance Department and receive confirmation that we received it to assure we take the credit.
Please also mail the original letter to:
Valley Wine Warehouse
Attn: Sonia Sierra
P.O. Box 11056
Napa, CA 94581
Since each winery’s business is unique, unfortunately we cannot determine qualification for these credits. We recommend that you consult with a compliance professional if you are not sure whether you qualify for these credits or how these changes will impact your business.
Should you have further questions, please contact our Compliance Department.