NY State Senate Bill 2015-S6294

Senate Bill S6294

2015-2016 Legislative Session

Provides a tax credit to taxpayers who grow the base ingredients necessary for the production of beer

download bill text pdf

Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 02, 2016	reported and committed to finance
Jan 06, 2016	referred to investigations and government operations

Votes

- Jun 2, 2016 - Investigations And Government Operations Committee Vote
  S6294
  
  8
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Investigations And Government Operations Committee Vote: Jun 2, 2016
      
      aye (8)
      
      Carlucci
      
      Golden
      
      Hoylman-Sigal
      
      Lanza
      
      Murphy
      
      Nozzolio
      
      O'Mara
      
      Squadron
      
      excused (1)
      
      Diaz

co-Sponsors

View additional co-sponsors

2015-S6294 (ACTIVE) - Details

See Assembly Version of this Bill:: A9425
Current Committee:: Senate Finance
Law Section:: Tax Law
Laws Affected:: Add §37-a, amd §§210-B & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S682, A4474
2019-2020: S3190, A5531
2021-2022: A4291
2023-2024: A5498

2015-S6294 (ACTIVE) - Summary

Provides a tax credit to taxpayers who grow the base ingredients necessary for the production of beer.

2015-S6294 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6294

 TITLE OF BILL :

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

 PURPOSE :

This bill creates a tax credit for the agricultural production of
ingredients needed for brewing and distilling.

 SUMMARY OF PROVISIONS :

Section 1: adds section 37-a to the state tax law to create a tax
credit for agricultural ingredients needed for beer production equal
to the costs necessary for the production of such ingredients, to
provide the crop is sold directly to a distributor registered, and to
provide no credit shall be allowed for any ingredient used to add
flavor, color, or alter characteristic of the beer.

Section 2: amends section 210-B of the tax law by adding subdivision
51 to provide for the tax credit imposed in Section 1 to be counted
against the tax imposed, including the ability for a provider to
receive a refund or overpayment credit should the amount of the

production credit exceed the overall tax liability.

Section 3: amends subparagraph B of paragraph 1 of subsection I of
section 606 of the state tax law by adding clause xliii to provide for
the beer production tax credit for shareholders of a New York S
corporation.

Section 4: amends section 606 of the tax law by adding subsection eee
to provide for the beer production ingredients tax credit.

Section 5: sets the effective date.

 JUSTIFICATION :

Between 2012 and 2014, the New York State Brewers Association has
reported that the number of New York State breweries has risen from 95
to 207. Many of these New York brewers look to locally sourced
ingredients for their brews. This increase provides for a unique
opportunity for New York agricultural producers to provide locally
grown materials to these breweries, without the added cost of shipping
agricultural ingredients over a long distance. This tax credit would
only apply to the underlying cost of growing ingredients for brewing,
and would not apply to any profits earned when selling the ingredients
to the breweries.

Implementing an agricultural production tax credit for New York
growers will allow these producers to recoup the cost incurred in
growing these products. By providing such a credit, New York farmers
could better compete with agricultural producers in other states and
in other countries. New York could see an increase in the number of
farms and ingredients produced, which would lead to an increase in
jobs at these farms within the state.  Additionally, New York brewers
would be able to purchase more cost effective, locally grown
ingredients, which would give local breweries a more economical source
of local ingredients.

 LEGISLATIVE HISTORY :

New Bill.

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect immediately.

2015-S6294 (ACTIVE) - Bill Text download pdf

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

                                  6294

                            I N  S E N A T E

                               (PREFILED)

                             January 6, 2016
                               ___________

Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

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:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD13163-01-5

S. 6294                             2

  51.  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 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.

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Senate Bill S6294

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Sponsored By

Timothy M. Kennedy

Archive: Last Bill Status - In Senate Committee Finance Committee

co-Sponsors

Phil Boyle

Leroy Comrie

Jesse Hamilton

George Latimer

2015-S6294 (ACTIVE) - Details

2015-S6294 (ACTIVE) - Summary

2015-S6294 (ACTIVE) - Sponsor Memo

2015-S6294 (ACTIVE) - Bill Text download pdf

Comments