STATE OF NEW YORK ________________________________________________________________________ 3190 2019-2020 Regular Sessions IN SENATE February 4, 2019 ___________ Introduced by Sens. KENNEDY, BOYLE, COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Investi- gations and Government Operations 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 53. 24 (2) Article 22: Section 606, subsection (jjj). EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02060-01-9S. 3190 2 1 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 2 sion 53 to read as follows: 3 53. 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 (xliv) to read as 13 follows: 14 (xliv) Supplier of beer Amount of credit under 15 production ingredients tax subdivision fifty-three 16 credit under subsection (jjj) of section two hundred ten-B 17 § 4. Section 606 of the tax law is amended by adding a new subsection 18 (jjj) to read as follows: 19 (jjj) Supplier of beer production ingredients tax credit. A taxpayer 20 shall be allowed a credit, to be computed as provided in section thir- 21 ty-seven-a of this chapter, against the tax imposed by this article. If 22 the amount of the credit allowed under this subsection for any taxable 23 year shall exceed the taxpayer's tax for such year, the excess shall be 24 treated as an overpayment of tax to be credited or refunded in accord- 25 ance with the provisions of section six hundred eighty-six of this arti- 26 cle, provided, however, that no interest shall be paid thereon. 27 § 5. This act shall take effect immediately and shall apply to taxable 28 years commencing on or after such effective date.