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NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5422 SPONSOR: Kolb (MS)
TITLE OF BILL: An act to amend the tax law, in relation to providing for a credit against the personal income tax and the franchise tax on corporations for certain bottling, packaging and labelling expenses of wineries, breweries and distilleries   PURPOSE OR GENERAL IDEA OF BILL: To alleviate the financial burden upon the wine, liquor and beer indus- tries by providing a tax credit for bottling, packaging, and labeling expenses of wineries, breweries and distilleries.   SUMMARY OF SPECIFIC PROVISIONS: Sections 1 and 2 amend sections 210 and 606 of the Tax Law to provide a tax credit to wineries, breweries and distilleries for bottling, packag- ing, and labeling expenses. Section 3 contains the effective date.   JUSTIFICATION: The major wine producing countries, Spain, France, Portugal, Italy, and Germany all provide the cases, the labels, the corks and bottles as a subsidy to their wine industry. For that reason, those nations can ship to this country wines which are able to sell at an average of between $2.60 and $3.00 a bottle less than New York State wines. A tax credit would enable New York State vintners, distillers and brewers to compete nationally and internationally in these competitive but controlled marketplaces. Encouraging wine, distillery and brewery industry expan- sion in New York would also trigger economic development through agri- cultural expansions.   PRIOR LEGISLATIVE HISTORY: A.4574 (2013-14), Held in Ways and Means; A.1209 (2011-12), Held in Ways and Means; A.2806 (2009-10), Held in Ways and Means; A.2368 (2007-08), Held in Ways and Means; A.5995-A (2005-06), Referred to Ways and Means; A.4112 (2003-04), Held in Ways and Means; A.2302 (2001-02), Held in Ways and Means; A.2248 (1997-98), Held in Ways and Means; A.5847 (1995-96), Held in Ways and Means.   FISCAL IMPLICATIONS: To be determined.   EFFECTIVE DATE: This act shall take effect immediately.