AB-65 – Contract Brewing Tax and Reporting Requirements
What breweries must know about tax responsibility and how to report contracted beer activity
Maryland clarified how contracted beer production must be reported and who is responsible for paying the beer excise tax, and this guidance explains the roles of contracting and contracted breweries and how to complete required tax forms correctly.
What you need to know
- The contracting brewery is responsible for paying the beer excise tax
- New reporting lines and forms must be used
- Both contracting and contracted breweries must report activity
- Reporting requirements differ based on your role
Who This Applies To
This guidance applies to:
- Maryland breweries involved in contracted beer production
- Contracting breweries (beer owners)
- Contracted breweries (producers)
Tax Responsibility
The contracting brewery (beer owner):
- Is responsible for paying the Maryland beer excise tax
This applies to:
- Beer produced on its behalf by another brewery
What Changed
Maryland updated:
- Brewery Tax Return (Form 376)
- Added a new reporting line:
- Line 14C (contracted beer)
Also introduced:
- Form 376A (Contracted Beer Acquisitions Report)
Reporting for Contracting Breweries
If you are the contracting brewery:
You must:
- Report total contracted beer (in gallons) on Line 14C
- Provide detailed information on Form 376A
You must also:
- Include this beer in standard reporting for taxable dispositions
Reporting for Contracted Breweries
If you are the contracted brewery:
You must:
- Report contracted beer as a sale to the contracting brewery
On Form 376:
- Report total gallons on Line 1
- Also report on:
- Line 14A (out-of-state brewery), or
- Line 14B (in-state brewery)
You must also:
- Use separate schedules (Form 376D) for contracted beer
Important Requirement
- Contracted beer must be reported separately from non-contracted beer
- All reporting must match across both parties
What This Means for Businesses
Breweries should:
- Identify whether they are contracting or contracted
- Update reporting processes to use new forms and lines
- Ensure accurate and consistent reporting between parties
- Track all contracted production separately
Important Notes
- Misreporting contracted beer may lead to compliance issues
- Both parties have reporting responsibilities
- Tax responsibility rests with the contracting brewery
Need Help?
For questions about tax reporting, contact the Maryland Comptroller’s Office: 410-260-7980