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

                                  5594

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 23, 2013
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Cities

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
              

S. 5594                             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.