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

                                  9425

                          I N  A S S E M B L Y

                              March 3, 2016
                               ___________

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  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The tax law is amended by adding a new section 37-a to read
as follows:
  S 37-A. SUPPLIER OF BEER PRODUCTION INGREDIENTS TAX CREDIT. (A) GENER-
AL. 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 SPEC-
IFIED  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 EMPLOY-
EES' 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 51.
  (2) ARTICLE 22: SECTION 606, SUBSECTIONS (I) AND (EEE).
  S 2. Section 210-B of the tax law is amended by adding a new  subdivi-
sion 51 to read as follows:
  51.  SUPPLIER  OF  BEER  PRODUCTION INGREDIENTS TAX CREDIT. A TAXPAYER
SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN  SECTION  THIR-

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

                                                           LBD13163-01-5

A. 9425                             2

TY-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 ACCORD-
ANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS CHAP-
TER, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S 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-ONE
CREDIT UNDER SUBSECTION (EEE)        OF SECTION TWO HUNDRED TEN-B
  S 4. Section 606 of the tax law is amended by adding a new  subsection
(eee) to read as follows:
  (EEE)  SUPPLIER  OF BEER PRODUCTION INGREDIENTS TAX CREDIT. A TAXPAYER
SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN  SECTION  THIR-
TY-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 ACCORD-
ANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTI-
CLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S 5. This act shall take effect immediately and shall apply to taxable
years commencing on or after such effective date.