Qualified Small Distiller Certificate
The Qualified Small Distiller Certificate is available to Michigan small distillers and equivalent out-of-state distillers who are committed to using at least 40% Michigan-grown and harvested grain in their base distillate. The certificate is the first step in adjusting the gross profit that a small distiller returns to the MLCC.
The 2022 Qualified Small Distiller Certificate application period is September 1 - September 23. Upon receipt of the form by MDARD, applicants will receive an email from MDARD-QualifiedDistiller@michigan.gov with an invoice for $500.00 which must be paid within 15 business days. All applicants will receive an invoice by September 30. If applicants do not receive an invoice within seven business days, contact Jenelle Jagmin at 517-930-0696.
After the application period closes, the Michigan Craft Beverage Council will provide a list of qualified distillers to the Michigan Liquor Control Commission. It will be the distiller’s responsibility to then notify the MLCC of qualified distilled products. The payment adjustment will happen through MLCC’s Equote system. For products to qualify by January 1, this will be done in December, 2022.
It is important that distillers only register product that the business can verify are made with 40% Michigan-grown and harvested grain. Needed from business for audit purposes: Scale tickets and/or Michigan certification of origination statements for all qualified grain used in each product. Along with scale tickets/origination statements, MDARD will need to see the amount of all ingredients that goes into each product (Michigan and non-Michigan) so that a calculation can be made to determine that 40% qualified grains were used. If the distiller sourced grain out of state and grain in state for one product, MDARD would need to know how much of each.
The annual application must be renewed each year on July 1.
Jenelle Jagmin, Director, Michigan Craft Beverage Council
Michigan Department of Agriculture and Rural Development
Qualified Small Distiller Certificate Email Notifications
Please enter your email address here to be added to the qualified distiller listserv and you'll receive notifications pertaining to this certificate.
Frequently Asked Questions
How do I file an annual application to be a qualified small distiller?
The 2022 Michigan Qualified Distiller Application period is September 1 – September 23. Upon receipt of the form by MDARD, applicants will receive an email from MDARD-QualifiedDistiller@michigan.gov with an invoice that must be paid within 15 business days. All applicants will receive an invoice by September 30, 2022.
How much does the application cost?
The qualified distiller application fee is $500.00
What if I submitted my application but did not receive an emailed invoice within seven business days?
Contact Jenelle Jagmin at 517-930-0696 or MDARD-QualifiedDistiller@michigan.gov
When will the qualified small distiller certificate need to be renewed?
July 1, 2023
What is eligible to be qualified distilled product?
A qualified distilled product contains the base distillate of the small distiller or the out-of-state entity that is the substantial equivalent of a small distiller which is at least 40% distilled from qualified grain grown and harvested in this state.
What records are necessary to determine if I have a qualified distilled product?
A qualified small distiller shall keep a complete and accurate set of records and accounts of all transactions pertaining to the operation of its distillery, including, but not limited to, records and accounts of all qualified grain received in or withdrawn from the distillery, all acknowledgment forms and Michigan certification of origination statements in the qualified small distiller’s possession, copies of all contracts, and acknowledgment forms returned to and settled by the qualified small distiller.
Information must include amounts of all ingredients (Michigan and non-Michigan) to determine the 40% threshold required for qualified products.
When will the price of each qualified distilled spirits manufactured by a qualified small distiller return a gross profit to the commission of 32.5%?
January 1, 2023
What is the penalty if I knowingly supply false information?
A small distiller or an out-of-state entity that is the substantial equivalent of a small distiller that knowingly supplies false information to MDARD or the MLCC is guilty of a misdemeanor punishable by imprisonment for not more than 1 year or a fine of not more than $3,000.00, or both. A small distiller or an out-of-state entity that is the substantial equivalent of a small distiller that knowingly supplies false information as described in this subsection shall pay the commission the difference between the gross profit the commission would have received under subsection (1) if the small distiller or the out-of-state entity that is the substantial equivalent of a small distiller was not a qualified small distiller, as determined by the commission.
Michigan Craft Beverage Council
The Michigan Craft Beverage Council (MCBC) is a 10-member, governor-appointed board that is advisory to the Michigan Department of Agriculture and Rural Development. The Council facilitates research, promotion, and agricultural business development efforts, supporting connections that are vital to a unique supply chain. The spirit of collaboration drives Council activities, with the goal of unifying and uplifting Michigan’s craft beverage industry now and for the future.
For more information about the Michigan Craft Beverage Council, visit MichiganCraftBeverage.com.