In a push to boost the development of craft breweries and expand local business growth, Assemblymember Anthony J. Brindisi (D-Utica) announced the Assembly passed legislation he authored to restore vital tax credits to small breweries in New York State (A.10695). The tax credits replace a previous exemption that was deemed unconstitutional earlier this year. Without the tax credits, losing the exemption would have proved costly to small brewers, jeopardizing growth, local jobs and future job creation. The measure has the support of the governor and the Senate.
“Craft breweries like F.X. Matt Brewing Company are thriving in New York State right now, and we should be doing everything we can to help them expand and succeed,” Assemblymember Brindisi said. “This measure will help allow these vital economic engines to grow, creating more jobs for hardworking New Yorkers and boosting economic development throughout the state.”
“We were very pleased to hear about this legislative package that supports New York craft brewers,” said Nick Matt, President of F.X. Matt Brewing Company. “The restoration of this tax credit was crucial. It will help us offset the loss of the excise tax break for small brewers earlier this year that was going to potentially cost us several hundred thousand dollars annually and would have clearly hurt our business. The fact that Assemblymember Brindisi, the governor and other legislative leaders recognized this as a problem and acted so quickly to support us and the many other affected small breweries is terrific and very much appreciated. Their actions will allow us and other craft brewers across the state to continue to grow and create more jobs.”
The credits would be equal to 14 cents per gallon for New York brewers on the first 500,000 gallons produced within the state, and another 4.5 cents-per-gallon credit for the next 15 million gallons. Brewers that produce more than 60 million gallons annually would not be eligible for this credit. Additionally, the legislation would provide an exemption from current labeling fees imposed on batches of less than 1,500 barrels. The measure is expected to cost approximately the same amount as the previously rescinded tax credits.
“These tax credits help support local businesses like the F.X. Matt Brewing Company, a brewery right here in Utica that has been committed to investing in our community for well over 100 years,” Assemblymember Brindisi said. “This builds on my ongoing efforts to make sure New York is open for business and that they can continue to stay competitive and thrive, especially in this difficult economic time.”