§ 37. Alcoholic beverage production credit. (a) General. A taxpayer
subject to tax under article nine-A or twenty-two of this chapter, that
is registered as a distributor under article eighteen of this chapter,
and that produces sixty million or fewer gallons of beer or cider,
twenty million or fewer gallons of wine, or eight hundred thousand or
fewer gallons of liquor in this state in the taxable year, shall be
allowed a credit against such taxes in the amount specified in
subdivision (b) of this section and pursuant to the provisions
referenced in subdivision (c) of this section. Provided, however, that
no credit shall be allowed for any beer, cider, wine or liquor produced
in excess of fifteen million five hundred thousand gallons in the
taxable year. If the taxpayer is a partner in a partnership or
shareholder of a New York S corporation, then the cap imposed by the
preceding sentence shall be applied at the entity level, so that the
aggregate credit allowed to all the partners or shareholders of each
such entity in the taxable year does not exceed that cap.

(b) The amount of the credit per taxpayer per taxable year (or pro
rata share of earned credit in the case of a partnership) for each
gallon of beer, cider, wine or liquor produced in this state shall be
determined as follows:

(1) for the first five hundred thousand gallons of:

i. beer produced in this state in the taxable year, the credit shall
equal fourteen cents per gallon;

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 fourteen 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) for each gallon of beer, cider, wine or liquor produced in this
state in the taxable year in excess of five hundred thousand gallons,
the credit shall equal four and one-half cents per gallon.

(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 39.

(2) Article 22: Section 606, subsections (i) and (uu).