S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7767

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                              June 4, 2013
                               ___________

Introduced by M. of A. LENTOL -- read once and referred to the Committee
  on Ways and Means

AN  ACT  to  amend  the  administrative code of the city of New York, in
  relation to establishing a credit for beer produced within the city of
  New York by a taxpayer that is registered as a distributor under arti-
  cle eighteen of the tax law

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  11-503 of the administrative code of the city of
New York is amended by adding a new subdivision (p) to read as follows:
  (P) BEER PRODUCTION CREDIT. (1) A TAXPAYER SUBJECT TO TAX  UNDER  THIS
CHAPTER,  THAT  IS REGISTERED AS A DISTRIBUTOR UNDER ARTICLE EIGHTEEN OF
THE TAX LAW, AND THAT PRODUCES SIXTY MILLION OR FEWER GALLONS OF BEER IN
THIS STATE IN THE TAXABLE YEAR, SHALL BE ALLOWED A  CREDIT  AGAINST  THE
TAX  IMPOSED BY THIS CHAPTER IN THE AMOUNT SPECIFIED IN PARAGRAPH TWO OF
THIS SUBDIVISION. PROVIDED, HOWEVER, THAT NO CREDIT SHALL BE ALLOWED FOR
ANY BEER PRODUCED IN EXCESS OF FIFTEEN  MILLION  FIVE  HUNDRED  THOUSAND
GALLONS  IN THE TAXABLE YEAR.  NOTWITHSTANDING ANYTHING TO THE CONTRARY,
IF A PARTNERSHIP IS ALLOWED A CREDIT UNDER THIS SUBDIVISION,  A  PARTNER
IN SUCH PARTNERSHIP SHALL NOT BE ALLOWED A CREDIT UNDER THIS SUBDIVISION
FOR  ANY TAXABLE YEAR THAT INCLUDES THE LAST DAY OF THE TAXABLE YEAR FOR
WHICH THE PARTNERSHIP IS ALLOWED SUCH CREDIT.
  (2) THE AMOUNT OF THE CREDIT PER TAXPAYER PER TAXABLE  YEAR  FOR  EACH
GALLON  OF  BEER  PRODUCED  IN  THE CITY OF NEW YORK ON OR AFTER JANUARY
FIRST, TWO THOUSAND FOURTEEN SHALL BE DETERMINED AS FOLLOWS:
  (I) FOR THE FIRST FIVE HUNDRED THOUSAND GALLONS OF  BEER  PRODUCED  IN
THE  CITY OF NEW YORK IN THE TAXABLE YEAR, THE CREDIT SHALL EQUAL TWELVE
CENTS PER GALLON; AND
  (II) FOR EACH GALLON OF BEER PRODUCED IN THE CITY OF NEW YORK  IN  THE
TAXABLE  YEAR  IN  EXCESS  OF  FIVE HUNDRED THOUSAND GALLONS, THE CREDIT
SHALL EQUAL THREE AND EIGHTY-SIX ONE HUNDREDTHS CENTS  PER  GALLON.  THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11248-01-3
              

A. 7767                             2

CREDIT  ALLOWED  UNDER  THIS  SUBDIVISION  FOR ANY TAXABLE YEAR SHALL BE
TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN  ACCORD-
ANCE  WITH  THE  PROVISIONS OF SECTION 11-526 OF THIS CHAPTER; PROVIDED,
HOWEVER,  THAT  NOTWITHSTANDING THE PROVISIONS OF SECTION 11-528 OF THIS
CHAPTER, NO INTEREST SHALL BE PAID THEREON.
  S 2. Section 11-604 of the administrative code of the city of New York
is amended by adding a new subdivision 22 to read as follows:
  22. BEER PRODUCTION CREDIT. (A) A TAXPAYER SUBJECT TO TAX  UNDER  THIS
SUBCHAPTER,  THAT  IS REGISTERED AS A DISTRIBUTOR UNDER ARTICLE EIGHTEEN
OF THE TAX LAW, AND THAT PRODUCES SIXTY MILLION OR FEWER GALLONS OF BEER
IN THIS STATE IN THE TAXABLE YEAR, SHALL BE ALLOWED A CREDIT AGAINST THE
TAX IMPOSED BY THIS SUBCHAPTER IN THE AMOUNT SPECIFIED IN PARAGRAPH  (B)
OF  THIS SUBDIVISION. PROVIDED, HOWEVER, THAT NO CREDIT SHALL BE ALLOWED
FOR ANY BEER PRODUCED IN EXCESS OF FIFTEEN MILLION FIVE HUNDRED THOUSAND
GALLONS IN THE TAXABLE YEAR. NOTWITHSTANDING ANYTHING TO  THE  CONTRARY,
IF  A  PARTNERSHIP  IS ALLOWED A CREDIT UNDER SUBDIVISION (P) OF SECTION
11-503 OF THIS TITLE, A TAXPAYER THAT IS A PARTNER IN  SUCH  PARTNERSHIP
SHALL  NOT  BE  ALLOWED  A CREDIT UNDER THIS SUBDIVISION FOR ANY TAXABLE
YEAR THAT INCLUDES THE LAST DAY OF THE TAXABLE YEAR FOR WHICH THE  PART-
NERSHIP IS ALLOWED SUCH CREDIT.
  (B)  THE  AMOUNT  OF THE CREDIT PER TAXPAYER PER TAXABLE YEAR FOR EACH
GALLON OF BEER PRODUCED IN THE CITY OF NEW  YORK  ON  OR  AFTER  JANUARY
FIRST, TWO THOUSAND FOURTEEN SHALL BE DETERMINED AS FOLLOWS:
  (1)  FOR  THE  FIRST FIVE HUNDRED THOUSAND GALLONS OF BEER PRODUCED IN
THE CITY OF NEW YORK IN THE TAXABLE YEAR, THE CREDIT SHALL EQUAL  TWELVE
CENTS PER GALLON; AND
  (2)  FOR  EACH  GALLON OF BEER PRODUCED IN THE CITY OF NEW YORK IN THE
TAXABLE YEAR IN EXCESS OF FIVE  HUNDRED  THOUSAND  GALLONS,  THE  CREDIT
SHALL  EQUAL THREE AND EIGHTY-SIX ONE HUNDREDTHS CENTS PER GALLON. IN NO
EVENT SHALL THE CREDIT ALLOWED UNDER THIS SUBDIVISION  FOR  ANY  TAXABLE
YEAR REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE AMOUNT PRESCRIBED
IN  CLAUSE FOUR OF SUBPARAGRAPH (A) OF PARAGRAPH E OF SUBDIVISION ONE OF
THIS SECTION. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDI-
VISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT,  ANY  AMOUNT
OF  CREDIT  THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS
AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH  THE
PROVISIONS  OF  SECTION  11-677 OF THIS CHAPTER; PROVIDED, HOWEVER, THAT
NOTWITHSTANDING THE PROVISIONS OF SECTION 11-679  OF  THIS  CHAPTER,  NO
INTEREST SHALL BE PAID THEREON.
  S  3. This act shall take effect immediately, and shall apply to taxa-
ble years beginning on or after January 1, 2014.