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A05422 Memo:

BILL NUMBER:A5422

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
industries 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,
packaging, 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 expansion in New York would also trigger economic development
through agricultural 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.

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