NY State Senate Bill 2017-S682

Senate Bill S682

2017-2018 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 Investigations And Government Operations 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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to investigations and government operations
Jan 04, 2017	referred to investigations and government operations

co-Sponsors

2017-S682 (ACTIVE) - Details

See Assembly Version of this Bill:: A4474
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Add §37-a, amd §§210-B & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S6294, A9425
2019-2020: S3190, A5531
2021-2022: A4291
2023-2024: A5498

2017-S682 (ACTIVE) - Summary

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

2017-S682 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S682

 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
52 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 hhh
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 :

2016: S.6294 Committed to Finance/A.9425 Referred to Ways and Means

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S682 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    682
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 4, 2017
                                ___________
 
 Introduced  by  Sens.  KENNEDY, BOYLE, COMRIE, HAMILTON, LATIMER -- read
   twice and ordered printed, and when printed to  be  committed  to  the
   Committee on Investigations and Government 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:
   § 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 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

 S. 682                              2
 
   §  2. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 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  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.
   § 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  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.
   § 5. This act shall take effect immediately and shall apply to taxable
 years commencing on or after such effective date.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Senate Bill S682

Share this bill

Sponsored By

Timothy M. Kennedy