NY State Senate Bill 2021-S3972A

Senate Bill S3972A

2021-2022 Legislative Session

Relates to the amount of credit for cider, wine, and liquor under the alcoholic beverage production credit

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

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to investigations and government operations
Mar 03, 2021	print number 3972a
Mar 03, 2021	amend and recommit to investigations and government operations
Feb 01, 2021	referred to investigations and government operations

Bill Amendments

Original

A (Active)

co-Sponsors

2021-S3972 - Details

See Assembly Version of this Bill:: A3487
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §37, Tax L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S7396, A8996
2019-2020: S246, A6485
2023-2024: S3496, A1947

2021-S3972 - Summary

Relates to the amount of credit for cider, wine, and liquor produced in NYS under the alcoholic beverage production credit; provides parity with beer credit based on the taxes for cider, wine, and liquor.

2021-S3972 - Sponsor Memo

                                
 
BILL NUMBER: S3972

SPONSOR: KENNEDY
 
TITLE OF BILL:

An act to amend the tax law, in relation to the amount of credit for
cider, wine, and liquor under the alcoholic beverage production credit

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1. Maintains the credit amount for: For the first 500,000
gallons of:

i. beer produced in this state in the taxable year, the credit shall
equal 14 cents per gallon. Updates the credit amount for the following:
For the first 500,000 gallons of ii. Cider, artificially carbonated
sparkling cider, and natural sparkling cider, containing more than three
and two-tenths per centum of alcohol by volume produced in this state in
the taxable year, the credit shall equal 3.79 cents per gallon; iii.
Still wine, artificially carbonated sparkling wine, and natural sparkl-
ing wine produced in this state in the taxable year, the credit shall
equal 0.30 cents per gallon; iv. Liquors containing not more than 24% of

alcohol by volume produced in this state in the taxable year, the credit
shall equal 2.54 cents per gallon;

v. Liquors containing not more than 2% of alcohol by volume produced in
this state in the taxable year, the credit shall equal 0.04 cents per
gallon; vi. All other liquors produced in this state in the taxable
year, the credit shall equal 6.44 cents per gallon.

 
JUSTIFICATION:

In 2016, the Alcoholic Beverage Production Tax Credit was extended to
include cider, wine, and spirits. By extending the current beer credit
(14 cents) to all industries, an inequity occurred resulting in differ-
ent tax credit amounts being given to the different distillers. When
extending the credit, the precise tax paid by spirit distillers was not
considered nor was there any adjustment made to reflect an equal credit
distribution across industries.

Due to this, the 14 cents a gallon credit is 100% of the taxes for beer
but only accounts for about 2% of the tax for Spirits. This inequity
leaves small businesses at an unfair disadvantage. The bill would amend
the credit to create equity and parity among the different beverage
industries. New York state has experienced a surge in the distilling
industry - going from 11 distillers in 2011 to 148 in 2017. This
increase in the Spirits industry has not been accounted for in the
current credit they receive.

 
LEGISLATIVE HISTORY:

2017-18: S.7396/A.8996

2019-20: S.246

 
FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on or after January 1, 2021.

2021-S3972 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3972
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 1, 2021
                                ___________
 
 Introduced  by  Sens.  KENNEDY, BIAGGI, O'MARA -- read twice and ordered
   printed, and when printed to be committed to the Committee on Investi-
   gations and Government Operations
 
 AN ACT to amend the tax law, in relation to the  amount  of  credit  for
   cider, wine, and liquor under the alcoholic beverage production credit

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 1 of subdivision (b) of section  37  of  the  tax
 law,  as  amended  by  section  1 of part V of chapter 60 of the laws of
 2016, is amended to read as follows:
   (1) for the first five hundred thousand gallons of:
   I. beer[, cider, wine or liquor] produced in this state in the taxable
 year, the credit shall equal fourteen cents per gallon; [and]
   II. CIDER, ARTIFICIALLY CARBONATED SPARKLING CIDER, AND NATURAL  SPAR-
 KLING  CIDER,  CONTAINING  MORE  THAN THREE AND TWO-TENTHS PER CENTUM OF
 ALCOHOL BY VOLUME PRODUCED IN THIS STATE IN THE TAXABLE YEAR, THE CREDIT
 SHALL EQUAL THREE AND SEVENTY-NINE HUNDREDTHS CENTS PER GALLON;
   III. STILL WINE, ARTIFICIALLY CARBONATED SPARKLING WINE,  AND  NATURAL
 SPARKLING  WINE  PRODUCED  IN THIS STATE IN THE TAXABLE YEAR, THE CREDIT
 SHALL EQUAL THIRTY CENTS PER GALLON;
   IV. LIQUORS CONTAINING NOT MORE THAN TWENTY-FOUR PER CENTUM OF ALCOHOL
 BY VOLUME PRODUCED IN THIS STATE IN THE TAXABLE YEAR, THE  CREDIT  SHALL
 EQUAL TWO AND FIFTY-FOUR HUNDREDTHS CENTS PER GALLON;
   V.  LIQUORS  CONTAINING  NOT  MORE  THAN  TWO PER CENTUM OF ALCOHOL BY
 VOLUME PRODUCED IN THIS STATE IN THE  TAXABLE  YEAR,  THE  CREDIT  SHALL
 EQUAL FOUR CENTS PER GALLON;
   VI.  ALL OTHER LIQUORS PRODUCED IN THIS STATE IN THE TAXABLE YEAR, THE
 CREDIT SHALL EQUAL SIX AND FORTY-FOUR HUNDREDTHS CENTS PER GALLON; AND
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2022.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05605-03-1

co-Sponsors

View additional co-sponsors

2021-S3972A (ACTIVE) - Details

See Assembly Version of this Bill:: A3487
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §37, Tax L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S7396, A8996
2019-2020: S246, A6485
2023-2024: S3496, A1947

2021-S3972A (ACTIVE) - Summary

2021-S3972A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3972A

SPONSOR: KENNEDY
 
TITLE OF BILL:

An act to amend the tax law, in relation to the amount of credit for
cider, wine, and liquor under the alcoholic beverage production credit

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1. Maintains the credit amount for the first 500,000 gallons of
beer produced in this state in the taxable year.

Updates the credit amount for the following for the first 500,000
gallons of

ii. Cider, artificially carbonated sparkling cider, and natural sparkl-
ing cider, containing more than three and two-tenths per centum of alco-
hol by volume produced in this state in the taxable year, the credit
shall equal three and seventy-nine hundredths cents per gallon;

iii. Still wine, artificially carbonated sparkling wine, and natural

sparkling wine produced in this state in the taxable year, the credit
shall equal 0.30 cents per gallon;

v. Liquors containing not more than 24% of alcohol by volume produced in
this state in the taxable year, the credit shall equal 2.54 cents per
gallon;

v. Liquors containing not more than 2% of alcohol by volume produced in
this state in the taxable year, the credit shall equal zero;

vi. All other liquors produced in this state in the taxable year, the
credit shall equal 6.44 cents per gallon.

 
JUSTIFICATION:

In 2016, the Alcoholic Beverage Production Tax Credit was extended to
include cider, wine, and spirits. By extending the current beer credit
to all industries, an inequity occurred resulting in different tax cred-
it amounts being given to the different distillers. When extending the
credit, the precise tax paid by spirit distillers was not considered nor
was there any adjustment made to reflect an equal credit distribution
across industries.

Due to this, the 14 cents a gallon credit is 100% of the taxes for beer
but only accounts for about 2% of the tax for Spirits. This inequity
leaves small businesses at an unfair disadvantage. The bill would amend
the credit to create equity and parity among the different beverage
industries. New York state has experienced a surge in the distilling
industry - going from 11 distillers in 2011 to 148 in 2017. This
increase in the Spirits industry has not been accounted for in the
current credit they receive.

 
LEGISLATIVE HISTORY:

2017-18: S.7396/A.8996

2019-20: S.246
 
FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on or after January 1, 2021.

2021-S3972A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3972--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 1, 2021
                                ___________
 
 Introduced  by  Sens.  KENNEDY, BIAGGI, O'MARA -- read twice and ordered
   printed, and when printed to be committed to the Committee on Investi-
   gations  and  Government  Operations  --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee

 AN ACT to amend the tax law, in relation to the  amount  of  credit  for
   cider, wine, and liquor under the alcoholic beverage production credit
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 1 of subdivision (b) of section  37  of  the  tax
 law,  as  amended  by  section  1 of part V of chapter 60 of the laws of
 2016, is amended to read as follows:
   (1) for the first five hundred thousand gallons of:
   I. beer[, cider, wine or liquor] produced in this state in the taxable
 year, the credit shall equal fourteen cents per gallon; [and]
   II. CIDER, ARTIFICIALLY CARBONATED SPARKLING CIDER, AND NATURAL  SPAR-
 KLING  CIDER,  CONTAINING  MORE  THAN THREE AND TWO-TENTHS PER CENTUM OF
 ALCOHOL BY VOLUME PRODUCED IN THIS STATE IN THE TAXABLE YEAR, THE CREDIT
 SHALL EQUAL THREE AND SEVENTY-NINE HUNDREDTHS CENTS PER GALLON;
   III. STILL WINE, ARTIFICIALLY CARBONATED SPARKLING WINE,  AND  NATURAL
 SPARKLING  WINE  PRODUCED  IN THIS STATE IN THE TAXABLE YEAR, THE CREDIT
 SHALL EQUAL THIRTY CENTS PER GALLON;
   IV. LIQUORS CONTAINING NOT MORE THAN TWENTY-FOUR PER CENTUM OF ALCOHOL
 BY VOLUME, BUT MORE THAN TWO PER CENTUM OF ALCOHOL PER VOLUME,  PRODUCED
 IN  THIS  STATE  IN THE TAXABLE YEAR, THE CREDIT SHALL EQUAL TWO DOLLARS
 AND FIFTY-FOUR CENTS PER GALLON;
   V. LIQUORS CONTAINING MORE THAN ZERO PER CENTUM OF ALCOHOL BY  VOLUME,
 BUT  NOT MORE THAN TWO PER CENTUM OF ALCOHOL BY VOLUME, PRODUCED IN THIS
 STATE IN THE TAXABLE YEAR, THE CREDIT SHALL EQUAL ZERO;
   VI. ALL OTHER LIQUORS PRODUCED IN THIS STATE IN THE TAXABLE YEAR,  THE
 CREDIT SHALL EQUAL SIX DOLLARS AND FORTY-FOUR CENTS PER GALLON; AND
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2021.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05605-04-1

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Senate Bill S3972A

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Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Bill Amendments

co-Sponsors

2021-S3972 - Details

2021-S3972 - Summary

2021-S3972 - Sponsor Memo

2021-S3972 - Bill Text download pdf

co-Sponsors

2021-S3972A (ACTIVE) - Details

2021-S3972A (ACTIVE) - Summary

2021-S3972A (ACTIVE) - Sponsor Memo

2021-S3972A (ACTIVE) - Bill Text download pdf

Comments