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S07728 Summary:

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S07728 Floor Votes:

S07728 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
            S. 7728                                                 A. 10695
 
                SENATE - ASSEMBLY
 
                                      June 15, 2012
                                       ___________
 
        IN  SENATE -- Introduced by Sens. ZELDIN, GRIFFO, SEWARD, YOUNG, ROBACH,
          NOZZOLIO -- (at request of the Governor) --  read  twice  and  ordered
          printed, and when printed to be committed to the Committee on Rules
 
        IN  ASSEMBLY -- Introduced by COMMITTEE ON RULES -- (at request of M. of
          A. Brindisi, Lentol, Barrett, Bronson, Cymbrowitz, Gabryszak,  Lifton,

          Lupardo, Magee, Millman, Morelle, Roberts, Russell, Schimminger, Skar-
          tados,  Zebrowski)  --  (at  request of the Governor) -- read once and
          referred to the Committee on Ways and Means
 
        AN ACT to amend the tax law, in relation to establishing a credit  under
          articles  9-A and 22 of such law for beer produced within the state by
          a taxpayer that is registered as a distributor under article 18 of the
          tax law; to amend the alcoholic beverage control law, in  relation  to
          the  exemption  from  the  beer  label registration fee; and to repeal
          subdivision 6 of section 424 of the tax law, relating to the exemption
          for beer produced and sold within the state  by  certain  distributors
          under article 18 of the tax law
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 

     1    Section 1. The tax law is amended by adding a new section 37  to  read
     2  as follows:
     3    §  37.  Beer production credit. (a) General. A taxpayer subject to tax
     4  under article nine-A or twenty-two of this chapter, that  is  registered
     5  as  a  distributor  under  article  eighteen  of  this chapter, and that
     6  produces sixty million or fewer gallons of beer in  this  state  in  the
     7  taxable year, shall be allowed a credit against such taxes in the amount
     8  specified  in  subdivision  (b)  of  this  section  and  pursuant to the
     9  provisions referenced in subdivision  (c)  of  this  section.  Provided,
    10  however, that no credit shall be allowed for any beer produced in excess
    11  of fifteen million five hundred thousand gallons in the taxable year. If

    12  the  taxpayer is a partner in a partnership or shareholder of a New York
    13  S corporation, then the cap imposed by the preceding sentence  shall  be
    14  applied at the entity level, so that the aggregate credit allowed to all
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD12160-01-2
        S. 7728                             2                           A. 10695
 
     1  the  partners  or  shareholders  of each such entity in the taxable year
     2  does not exceed that cap.
     3    (b)  The  amount  of  the credit per taxpayer per taxable year (or pro
     4  rata share of earned credit in the  case  of  a  partnership)  for  each

     5  gallon of beer produced in this state on or after April first, two thou-
     6  sand twelve shall be determined as follows:
     7    (1)  for  the  first five hundred thousand gallons of beer produced in
     8  this state in the taxable year, the credit shall  equal  fourteen  cents
     9  per gallon; and
    10    (2) for each gallon of beer produced in this state in the taxable year
    11  in  excess of five hundred thousand gallons, the credit shall equal four
    12  and one-half cents per gallon.
    13    (c) Cross-references. For application of the credit  provided  for  in
    14  this section, see the following provisions of this chapter:
    15    (1) Article 9-A: Section 210, subdivision 45.
    16    (2) Article 22: Section 606, subsections (i) and (uu).

    17    § 2. Section 210 of the tax law is amended by adding a new subdivision
    18  45 to read as follows:
    19    45.  Beer  production credit. A taxpayer shall be allowed a credit, to
    20  be computed as provided in section thirty-seven of this chapter, against
    21  the tax imposed by this article. In no event shall  the  credit  allowed
    22  under  this subdivision for any taxable year reduce the tax due for such
    23  year to less than the amount prescribed in paragraph (d) of  subdivision
    24  one of this section. However, if the amount of credit allowed under this
    25  subdivision  for  any  taxable  year reduces the tax to such amount, any
    26  amount of credit thus not deductible  in  such  taxable  year  shall  be
    27  treated  as  an overpayment of tax to be credited or refunded in accord-

    28  ance with the provisions of section  one  thousand  eighty-six  of  this
    29  chapter.  Provided, however, the provisions of subsection (c) of section
    30  one thousand eighty-eight of this chapter notwithstanding,  no  interest
    31  shall be paid thereon.
    32    §  3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    33  of the tax law is amended by adding a new  clause  (xxxiv)  to  read  as
    34  follows:
    35  (xxxiv) Beer production credit       Amount of credit under subdivision
    36  under subsection (uu)                subdivision forty-five of
    37                                       section two hundred ten
    38    §  4. Section 606 of the tax law is amended by adding a new subsection
    39  (uu) to read as follows:

    40    (uu) Beer production credit. A taxpayer shall be allowed a credit,  to
    41  be computed as provided in section thirty-seven of this chapter, against
    42  the  tax  imposed  by  this article. If the amount of the credit allowed
    43  under this subsection for any taxable year shall exceed  the  taxpayer's
    44  tax  for such year, the excess shall be treated as an overpayment of tax
    45  to be credited or refunded in accordance with the provisions of  section
    46  six  hundred  eighty-six  of  this  article,  provided, however, that no
    47  interest shall be paid thereon.
    48    § 5. Subdivision 6 of section 424 of the tax law is REPEALED.
    49    § 6. Paragraph (g) of subdivision 4 of section 107-a of the  alcoholic
    50  beverage  control law, as amended by chapter 535 of the laws of 2005, is
    51  amended to read as follows:

    52    (g) The authority shall exempt from such fee provisions the  registra-
    53  tion  of  each  brand label used for beer that is produced in small size
    54  batches [on the licensed premises in batches] totaling  fifteen  hundred
    55  barrels of beer or less annually.
        S. 7728                             3                           A. 10695
 
     1    §  7. This act shall take effect immediately, and shall apply to taxa-
     2  ble years beginning on or after January 1, 2012; provided, however  that
     3  sections  five  and six of this act shall be deemed to have been in full
     4  force and effect on and after March 28, 2012.