What's happening
This bill creates a tax credit for New York taxpayers who grow and sell base ingredients used in beer production.
Why it matters
Directly supports New York agriculture. by rewarding farmers who produce essential beer ingredients like barley, hops, and wheat, potentially increasing local sourcing and reducing reliance on out-of-state suppliers.
Limits the credit strictly to core ingredients. (not additives for flavor or color), focusing the incentive on the fundamental agricultural products necessary for beer, rather than specialty or novelty ingredients.
Connects farm production to the local brewing industry. by requiring crops to be sold to registered distributors, encouraging a stronger supply chain between New York growers and the state’s breweries.
Makes the tax credit refundable. , meaning farmers can benefit even if their tax liability is lower than the credit, which could be especially significant for small or struggling farms.
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Who cares
Headline styles
Tax Credit for Beer Crops
Plain English, a few words. Used as the page title.
Sponsors
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History
- Referred to ways and means
- Referred to ways and means
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Provides a tax credit to taxpayers who grow the base ingredients necessary for the production of beer
In Senate Committee · Investigations And Government Operations · Sponsor Timothy M. Kennedy
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4474
2017-2018 Regular Sessions
IN ASSEMBLY
February 2, 2017
Introduced by M. of A. MAGEE -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to providing a tax incentive to a taxpayer that grows base ingredients used for the production of beer
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The tax law is amended by adding a new section 37-a to read as follows:
§ 37-a. Supplier of beer production ingredients tax credit. (a) General. A taxpayer subject to tax under article nine-A or twenty-two of this chapter shall be allowed a credit against such taxes in the amount specified in subdivision (b) of this section and pursuant to the provisions referenced in subdivision (c) of this section.
(b)(1) The amount of the credit per taxpayer per taxable year (or pro rata share of earned credit in the case of a partnership) shall be equal to the cost borne by such taxpayer for the agricultural production of ingredients necessary for the production of beer. Such costs shall include the cost of seed, fertilizer, equipment, utilities, and employees' salaries.
(2) The credit allowed under this section shall only be applicable to that portion of a taxpayer's crop that is sold directly to a distributor registered under article eighteen of this chapter.
(3) The credit allowed under this section shall only apply to the base ingredients necessary to produce beer. This credit shall not be allowed for any ingredient or product that is used for the purpose of adding flavor, color, or altering some other characteristic of the beer.
(c) Cross-references. For application of the credit provided for in this section, see the following provisions of this chapter:
(1) Article 9-A: Section 210-B, subdivision 52.
(2) Article 22: Section 606, subsections (i) and (hhh).
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01111-01-7
A. 4474 2
§ 2. Section 210-B of the tax law is amended by adding a new subdivision 52 to read as follows:
52. Supplier of beer production ingredients tax credit. A taxpayer shall be allowed a credit, to be computed as provided in section thirty-seven-a of this chapter, against the tax imposed by this article. If the amount of the credit allowed under this subdivision for any taxable year shall exceed the taxpayer's tax for such year, the excess shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section six hundred eighty-six of this chapter, provided, however, that no interest shall be paid thereon.
§ 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xliii) to read as follows: (xliii) Supplier of beer Amount of credit under production ingredients tax subdivision fifty-two credit under subsection (hhh) of section two hundred ten-B
§ 4. Section 606 of the tax law is amended by adding a new subsection (hhh) to read as follows:
(hhh) Supplier of beer production ingredients tax credit. A taxpayer shall be allowed a credit, to be computed as provided in section thirty-seven-a of this chapter, against the tax imposed by this article. If the amount of the credit allowed under this subsection for any taxable year shall exceed the taxpayer's tax for such year, the excess shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section six hundred eighty-six of this article, provided, however, that no interest shall be paid thereon.
§ 5. This act shall take effect immediately and shall apply to taxable years commencing on or after such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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