Questions & Answers

Who is eligible for the Liquor License Lessor Deduction?

To qualify, a taxpayer who is a liquor license lessor and who held the license on June 30, 2021 may claim a deduction from net income in an amount equal to the gross receipts from sales of alcoholic beverages made by each liquor license lessee in an amount, if the liquor license is a dispenser's license and sales of alcoholic beverages for consumption off premises are less than fifty percent of total alcoholic beverage sales.

This deduction may be taken for each of four taxable years prior to January 1, 2026.

If you are filing as Married Filing Separately, you may claim up to $25,000, one-half of the deduction allowed on a joint return.

A taxpayer with ownership interest in a business, taxed for federal income tax purposes as a partnership or limited liability company which meets the requirements of this deduction, may claim a portion of the credit not to exceed the amount allowed had the deduction been claimed by a sole owner. The combined deduction amount may not exceed $50,000.

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