Bracebridge, Ontario – Charles Sousa, Minister of Finance, recently announced changes to the Small Beer Manufacturers’ Tax Credit included in the 2018 Ontario Budget. If passed, changes would enable more breweries to expand their operations, create jobs and fuel economic growth. Changes are proposed to come into effect retroactively, starting March 1, 2018.
Muskoka Brewery released the statement below:
At Muskoka Brewery, we’re committed to making a difference in the communities we serve. Since 2016, we’ve worked in partnership with the Ontario Craft Brewers Association to advocate for changes to the Small Beer Manufacturer’s Tax Credit and help craft breweries, like ours, grow.
With the introduction of Budget 2018, the Government of Ontario in collaboration with the Ontario Craft Brewers (OCB), has proposed changes to the Small Beer Manufacturer’s Tax credit, which when passed, will positively impact Ontario craft breweries, empowering them to grow their operations, create more jobs and expand to new markets – both domestically and internationally.
For Muskoka Brewery, the improved tax credit, as well as a substantial grant awarded by the Ministry of Economic Development, gives us the opportunity to invest in our growth and expansion. “This renewed tax credit isn’t just good for Muskoka Brewery, it’s good for Ontario craft beer. As a pioneer in the industry, we know there are significant hurdles to reach profitability,” says Todd Lewin, president, Muskoka Brewery. “This improved tax credit will remove a major barrier to growth and help small breweries get over significant hurdles.”
With this longer runway to grow and succeed, we will be investing $5 million in Muskoka Brewery in 2018, the largest capital expansion in our 23-year history. These funds will help us increase the brewery’s capacity and continuously improve the quality of our beer through new, cutting-edge technology and equipment. It will also support an expanded and enhanced retail store and taproom experience to solidify Muskoka as a destination brewery for locals, cottagers, day-trippers and tourists.
“This is a big moment for Muskoka Brewery, small businesses and for Ontario beer drinkers. It means better beer, more choice and that Canadian’s favourite breweries will be able to stick around,” says Lewin. “As a proudly independent brewery, we feel a tremendous amount of pride that our investment will stay in Ontario and support our local economy and community.”