This article was co-authored by Todd Collins, vice president of Alera Group.
Key Takeaways:
- Maryland’s Winery and Vineyard Economic Development Grant Program reimburses 25% of capital expenses — helping businesses invest in equipment, production tools, and agricultural materials.
- Eligible expenses include fermenters, bottling equipment, irrigation systems, and vineyard supplies — but labor, repairs, and utilities do not qualify.
- Wineries and vineyards must send applications with detailed expense reports and documentation by September 15 to be considered for funding.
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For owners, managing cash flow while investing in growth is a balancing act. The Winery and Vineyard Economic Development Grant (WVEDG) Program offers a valuable opportunity to offset costs by receiving reimbursement for qualified capital expenses. If you’re planning to upgrade equipment, expand operations, or improve production efficiency, this grant can be a key financial tool.
What Is the Maryland WVEDG Program?
The Maryland Department of Commerce administers this grant to help wineries and vineyards invest in essential infrastructure, equipment, and agricultural materials.
How Much Can a Winery or Vineyard Receive?
The program reimburses 25% of your eligible capital expenses — reducing financial strain and enabling your business to reinvest in its operations.
With funding subject to annual state budget limits, early applications are critical to securing support.
Who Can Apply?
Your business may qualify for the grant if you meet one of the following requirements:
- You are a Maryland winery holding a Class 3 or Class 4 license issued by the Comptroller of Maryland.
- You operate a Maryland vineyard with at least one contiguous acre dedicated to growing grapes for wine production.
Reviewing eligibility criteria before making capital investments can help your business plan effectively and maximize reimbursement.
What Expenses Qualify?
The grant covers costs related to the purchase and installation of equipment and agricultural materials that directly support winery or vineyard operations.
Eligible Expenses Include:
- Winery equipment: Bottling machines, fermenters, presses, crushers, corkers, and refrigeration systems.
- Vineyard investments: Irrigation equipment, trellising, soil amendments, fertilizer, and fruit plants.
- Production tools: Barrels, pumps, labeling machines, tractors, and pruning equipment.
What’s NOT Covered?
The grant does not reimburse costs for:
- Labor
- Repairs
- Construction
- Utilities
- General supplies
If your winery or vineyards is planning capital investments, working with an advisor can help you determine which purchases qualify and how to structure expenses for the best financial outcome.
How to Apply
Your business must send an application along with detailed expense documentation to be considered for funding.
Application Process
- Obtain business certification: Your business must be certified as a qualified entity through the Maryland Department of Commerce.
- Submit a report of expenses: You need to provide a detailed breakdown of purchases, including receipts and invoices.
- Meet the deadline: You must submit your application by September 15 of the calendar year in which the expenses were incurred. Grant amounts are confirmed by December 15.
Given the documentation requirements, your winery or vineyard may benefit from working with tax professionals to prepare exact reports and avoid missing eligible reimbursements.
Beyond the Grant: Tax and Financial Considerations
While securing grant funding is a key step, integrating it into a broader financial strategy can create even greater savings. Aligning capital purchases with state and federal tax incentives, depreciation benefits, and other financial tools can improve cash flow and profitability.
Working with an advisor can help your winery or vineyard:
- Improve tax benefits by aligning grant-covered purchases with deductions and credits.
- Maintain compliance by keeping audit-ready documentation for grants and tax filings.
- Plan for long-term financial success by balancing investment timing and funding sources.
Looking for guidance on tax-efficient planning, grant applications, or long-term financial strategies? Advisors familiar with the winery and vineyard industry can help you navigate these complexities.
Protecting Your Investment: Key Insurance and Risk Considerations
Applying for the Maryland WVEDG is a great opportunity to offset costs, but it’s essential to address key risk management and insurance factors to protect your business investments. Considerations include:
- Business personal property (BPP) coverage: Equipment purchased with grant funds — such as fermenters, bottling lines, and tractors — should be properly insured. When setting coverage limits, businesses should consider the full value of the equipment (not a discounted amount due to grant support). Additionally, the valuation method — replacement cost versus agreed value — should be carefully reviewed to ensure adequate coverage in the event of a loss.
- Contractual obligations and funding compliance: Grant recipients should review any contractual obligations tied to funding — including potential requirements to maintain specific insurance coverages or retain financial records for audits. Non-compliance could result in funding clawbacks.
- Loss payee provisions: If financing equipment or agricultural materials, lenders may require being listed as a loss payee on the insurance policy. This ensures they receive compensation in the event of a covered loss.
- Liability and business interruption: Expanding vineyard operations or upgrading production can introduce new risks. Reviewing liability coverage and business interruption insurance can help protect against potential disruptions and revenue loss.
Working with an experienced insurance advisor can help your winery or vineyard secure appropriate coverage, remain compliant with grant terms, and safeguard your long-term investment.
Act Now to Secure Funding
With the September 15 deadline, wineries and vineyards should start gathering documentation now to maximize funding potential. Since approvals depend on state budget availability, early submissions are recommended.
Navigating the grant application process while aligning it with broader tax and financial strategies can be complex. MGO works with winery and vineyard owners to find eligible expenses, structure capital investments to enhance tax benefits, and support compliance with reporting requirements to avoid delays or disqualifications. By taking the right steps now, your business can secure grant funding while strengthening your overall financial position.