This enactment amends the Income Tax Act to provide a tax credit for taxpayers who brewed, in Canada, less than 15 001 hectolitres of beer and malt liquor in a fiscal year.

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

Small brewery tax credit

127.‍31 There may be deducted from the tax otherwise payable under this Part for a taxation year by a taxpayer who is a licensed brewer under Part III of the Excise Act and who brewed, in Canada, in that fiscal year, less than 15 001 hectolitres of beer and malt liquor,

• (a) in the case of a brewer who brewed 5 000 hectolitres of beer and malt liquor or less, an amount determined by the formula

  A × (0.‍1 × B)

  where

  A

  is the quantity, in hectolitres, of beer and malt liquor brewed in that fiscal year, and

  B

  is the duty of excise set out in section 1 of Part II of the schedule to the Excise Act; or

• (b) in the case of a brewer who brewed more than 5 000 hectolitres of beer and malt liquor but less than 15 001 hectolitres of beer and malt liquor, an amount determined by the formula

  0.‍1 × [1 - (A - 5 000)/10 000] × B × A

  where

  A

  is the quantity, in hectolitres, of beer and malt liquor brewed in that fiscal year, and

  B

  is the duty of excise set out in section 1 of Part II of the schedule to the Excise Act.

  End of inserted block