Form IT-636I: Instructions for the Alcoholic Beverage Production Credit (Tax Year 2025)

Form IT-636I contains the official instructions from the New York State Department of Taxation and Finance for completing Form IT-636, Alcoholic Beverage Production Credit. This credit is designed for licensed breweries, wineries, distilleries, and cideries that produce beer, wine, liquor, or cider in New York State. If you run a small production facility and want to claim this credit on your 2025 New York return, IT-636I walks you through exactly how the calculation works and what documentation you need to keep.

The Alcoholic Beverage Production Credit rewards in-state manufacturers based on the gallons of product they produce each year, with different rates depending on whether you’re making beer and cider versus wine and liquor. The credit phases down after certain production thresholds, so larger producers won’t receive the same per-gallon benefit as smaller operations. The instructions break down these tiers clearly, including the maximum gallon limits that still qualify for a credit.

Who Needs This Form

You need Form IT-636 and its instructions if you hold a license from the New York State Liquor Authority to manufacture beer, cider, wine, or liquor within the state, and that production actually occurs at a New York facility. This applies to corporations, partnerships, and individual proprietors alike. If your business is structured as a partnership or S corporation, the credit typically passes through to the individual partners or shareholders, who then claim their share on their personal income tax returns using the information calculated on IT-636.

Out-of-state producers, or businesses that only distribute or sell alcoholic beverages without manufacturing them in New York, do not qualify. The credit is strictly tied to production activity licensed and performed within state borders.

When to Use IT-636I

You’ll reference these instructions when preparing your New York State income tax or corporation tax return for the 2025 tax year, specifically when you’re ready to fill out Form IT-636 to claim the credit. Because the credit is calculated per gallon produced during the tax year, you need your production records on hand before starting the form. The instructions clarify how to report multiple production locations if your business operates more than one licensed facility, and how to coordinate the credit with other New York State business incentives you might also be claiming, similar to how businesses handle overlapping credits described in the Excelsior Jobs Program Tax Credit instructions.

How to Get and Complete the Form

Form IT-636I is a PDF published directly by the New York State Department of Taxation and Finance, and it is not digitally fillable. That means you’ll need to download the PDF, print it out, and complete it by hand using black ink, then attach it to your paper return or keep it with your records if you’re filing electronically through approved software that supports this credit.

Before filling out the actual credit form, read through the instructions carefully to identify which production category applies to your business and confirm the gallon thresholds relevant to your operation. The instructions also explain how to carry forward any unused credit amount if your tax liability is smaller than the credit you’ve earned, since the Alcoholic Beverage Production Credit is refundable up to certain limits but may still involve carryforward provisions depending on your entity type.

If your business also qualifies for property tax relief programs or other state credits, it’s worth reviewing related guidance such as the QEZE Credit for Real Property Taxes instructions or the Environmental Remediation Insurance Credit instructions to see whether your facility location or property use opens up additional savings alongside this production credit.

Keep copies of your production logs, licensing documents, and completed IT-636 form for at least three years in case the Department of Taxation and Finance requests supporting documentation during a review.