S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5498
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 13, 2023
                                ___________
 
 Introduced  by M. of A. MAHER -- 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:
   § 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 59.
   (2) ARTICLE 22: SECTION 606, SUBSECTION (OOO).
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09198-01-3
 A. 5498                             2
              

 
   § 2. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 59 to read as follows:
   59.  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 (l) to read as follows:
 (L) SUPPLIER OF BEER                 AMOUNT OF CREDIT UNDER
 PRODUCTION INGREDIENTS TAX           SUBDIVISION FIFTY-NINE
 CREDIT UNDER SUBSECTION (OOO)        OF SECTION TWO HUNDRED TEN-B
   §  4. Section 606 of the tax law is amended by adding a new subsection
 (ooo) to read as follows:
   (OOO) 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.