Bill Text: NY A05498 | 2023-2024 | General Assembly | Introduced

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Bill Title: Provides a tax credit to taxpayers who grow the base ingredients necessary for the production of beer.

Spectrum: Partisan Bill (Republican 8-0)

Status: (Introduced) 2024-01-03 - referred to ways and means [A05498 Detail]

Download: New_York-2023-A05498-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          5498

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                     March 13, 2023
                                       ___________

        Introduced  by M. of A. MAHER -- read once and referred to the Committee
          on Ways and Means

        AN ACT to amend the tax law, in relation to providing a tax incentive to
          a taxpayer that grows base ingredients used for the production of beer

          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-a to read
     2  as follows:
     3    § 37-a. Supplier of beer production ingredients tax credit. (a) Gener-
     4  al. A taxpayer subject to tax under article nine-A or twenty-two of this
     5  chapter shall be allowed a credit against such taxes in the amount spec-
     6  ified  in subdivision (b) of this section and pursuant to the provisions
     7  referenced in subdivision (c) of this section.
     8    (b)(1) The amount of the credit per taxpayer per taxable year (or  pro
     9  rata share of earned credit in the case of a partnership) shall be equal
    10  to  the  cost  borne by such taxpayer for the agricultural production of
    11  ingredients necessary for the  production  of  beer.  Such  costs  shall
    12  include  the cost of seed, fertilizer, equipment, utilities, and employ-
    13  ees' salaries.
    14    (2) The credit allowed under this section shall only be applicable  to
    15  that portion of a taxpayer's crop that is sold directly to a distributor
    16  registered under article eighteen of this chapter.
    17    (3) The credit allowed under this section shall only apply to the base
    18  ingredients  necessary to produce beer. This credit shall not be allowed
    19  for any ingredient or product that is used for  the  purpose  of  adding
    20  flavor, color, or altering some other characteristic of the beer.
    21    (c)  Cross-references.  For  application of the credit provided for in
    22  this section, see the following provisions of this chapter:
    23    (1) Article 9-A: Section 210-B, subdivision 59.
    24    (2) Article 22: Section 606, subsection (ooo).

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09198-01-3
        A. 5498                             2

     1    § 2. Section 210-B of the tax law is amended by adding a new  subdivi-
     2  sion 59 to read as follows:
     3    59.  Supplier  of  beer  production ingredients tax credit. A taxpayer
     4  shall be allowed a credit, to be computed as provided in  section  thir-
     5  ty-seven-a of this chapter, against the tax imposed by this article.  If
     6  the  amount of the credit allowed under this subdivision for any taxable
     7  year shall exceed the taxpayer's tax for such year, the excess shall  be
     8  treated  as  an overpayment of tax to be credited or refunded in accord-
     9  ance with the provisions of section six hundred eighty-six of this chap-
    10  ter, provided, however, that no interest shall be paid thereon.
    11    § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
    12  of the tax law is amended by adding a new clause (l) to read as follows:
    13  (l) Supplier of beer                 Amount of credit under
    14  production ingredients tax           subdivision fifty-nine
    15  credit under subsection (ooo)        of section two hundred ten-B
    16    §  4. Section 606 of the tax law is amended by adding a new subsection
    17  (ooo) to read as follows:
    18    (ooo) Supplier of beer production ingredients tax credit.  A  taxpayer
    19  shall  be  allowed a credit, to be computed as provided in section thir-
    20  ty-seven-a of this chapter, against the tax imposed by this article.  If
    21  the amount of the credit allowed under this subsection for  any  taxable
    22  year  shall exceed the taxpayer's tax for such year, the excess shall be
    23  treated as an overpayment of tax to be credited or refunded  in  accord-
    24  ance with the provisions of section six hundred eighty-six of this arti-
    25  cle, provided, however, that no interest shall be paid thereon.
    26    § 5. This act shall take effect immediately and shall apply to taxable
    27  years commencing on or after such effective date.