New York State Assembly

 
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A01719 Summary:

A01719 Actions:

A01719 Committee Votes:

Committee:WAYS AND MEANS   Chair:Farrell      
DATE:06/06/2016AYE/NAY:32/0  Action: Favorable refer to committee Rules        
Farrell
Aye
Oaks
Aye
Lentol
Aye
Crouch
Aye
Schimminger
Aye
Barclay
Aye
Gantt
Aye
Fitzpatrick
Aye
Weinstein
Aye
Saladino
Aye
Glick
Aye
Hawley
Aye
Nolan
Aye
Duprey
Aye
Pretlow
Aye
Corwin
Excused
Perry
Excused
Malliotakis
Aye
Colton
Aye
Walter
Aye
Cook
Aye
Cahill
Aye
Aubry
Aye
Hooper
Aye
Thiele
Aye
Wright
Excused
Cusick
Aye
Ortiz
Aye
Benedetto
Aye
Markey
Aye
Moya
Aye
Weprin
Aye
Rodriguez
Aye
Ramos
Aye
Braunstein
Aye

Committee:RULES   Chair:Heastie      
DATE:06/07/2016AYE/NAY:29/0  Action: Favorable         
Heastie
Aye
Kolb
Aye
Gottfried
Aye
Tedisco
Aye
Lentol
Aye
Oaks
Aye
Farrell
Aye
Butler
Aye
Gantt
Aye
Crouch
Aye
Nolan
Aye
Finch
Aye
Weinstein
Aye
Barclay
Aye
Hooper
Aye
Raia
Aye
Ortiz
Aye
Duprey
Aye
Pretlow
Aye
Cook
Aye
Glick
Aye
Morelle
Aye
Aubry
Aye
Englebright
Aye
Wright
Excused
Dinowitz
Aye
Colton
Aye
Magnarelli
Aye
Perry
Aye
Markey
Aye

A01719 Floor Votes:

A01719 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)



 
BILL NUMBER: A1719C
 
SPONSOR: Lentol

 
TITLE OF BILL:  An act to amend the administrative code of the city of
New York, in relation to establishing a credit for beer produced within
the city of New York by a taxpayer that is registered as a distributor
under article eighteen of the tax law
 
 
PURPOSE:
 
To encourage the growth of New York City breweries by establishing a
beer production tax credit in the New York City Administrative Code.
 
 
SUMMARY OF PROVISIONS:
 
Section 1 adds a new subdivision (p) to section 11-503 of the New York
administrative code to provide a beer production business tax credit for
beer distributors that produce 60 million or fewer gallons of beer in
New York City. The tax credit shall be 12 cents per gallon for the first
500,000 of beer produced, and three and eighty-six one hundredths cents
per gallon thereafter until 15,500,000 gallons.
 
Section 2 adds a new subdivision 22 to section 11-604 of the New York
administrative code to provide a beer production corporate tax credit
for beer distributors that produce 60 million or fewer gallons of beer
in New York City. The amount of the credit shall equal that specified
for the business tax credit established in section 1 of the bill, and
likewise applicable to the first 15,500,000 gallons only.
 
 
JUSTIFICATION:
 
In 2012 New York State established a beer production tax credit With the
aim of continuing the State's support of breweries, particularly craft
brewers, while removing certain elements from the prior tax credit
scheme that had rendered it unconstitutional. This bill extends the 2012
credit to' taxes payable to New York City. The credit proposed by this
bill largely follows that granted in the 2012 legislation. This bill
establishes a tax credit of 12 cents per gallon for the first 500,000 of
beer produced, as opposed to 14 cents in the 2012 law, and three and
eight-six one hundredths cents per gallon thereafter, as opposed to
four-and-a-half cents.
 
 
LEGISLATIVE HISTORY:
 
A.7767 OF 2013-14
 
 
FISCAL IMPLICATIONS:
 
To be determined.
 
 
EFFECTIVE DATE:
This act shall take effect immediately and apply to taxable years begin-
ning on or after January 1, 2016

A01719 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         1719--C
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 12, 2015
                                       ___________
 
        Introduced by M. of A. LENTOL -- read once and referred to the Committee
          on Ways and Means -- recommitted to the Committee on Ways and Means in
          accordance  with Assembly Rule 3, sec. 2 -- committee discharged, bill
          amended, ordered reprinted as amended and recommitted to said  commit-
          tee  --  again  reported  from said committee with amendments, ordered
          reprinted as amended  and  recommitted  to  said  committee  --  again
          reported  from  said  committee  with amendments, ordered reprinted as
          amended and recommitted to said committee
 
        AN ACT to amend the administrative code of the  city  of  New  York,  in
          relation to establishing a credit for beer produced within the city of
          New York by a taxpayer that is registered as a distributor under arti-
          cle eighteen 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. Section 11-503 of the administrative code of  the  city  of
     2  New York is amended by adding a new subdivision (p) to read as follows:
     3    (p)  Beer  production credit. (1) A taxpayer subject to tax under this
     4  chapter, that is registered as a distributor under article  eighteen  of
     5  the tax law, and that produces sixty million or fewer gallons of beer in
     6  this  state  in  the taxable year, shall be allowed a credit against the
     7  tax imposed by this chapter in the amount specified in paragraph two  of
     8  this subdivision. Provided, however, that no credit shall be allowed for
     9  any  beer  produced  in  excess of fifteen million five hundred thousand
    10  gallons in the taxable year.  Notwithstanding anything in this title  to
    11  the  contrary,  if a partnership is allowed a credit under this subdivi-
    12  sion, a taxpayer that is a partner in  such  partnership  shall  not  be
    13  allowed  a  credit  under  this  subdivision  for  any taxable year that
    14  includes the last day of the taxable year for which the  partnership  is
    15  allowed such credit.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02212-06-6
        A. 1719--C                          2
 
     1    (2)  The  amount  of the credit per taxpayer per taxable year for each
     2  gallon of beer produced in the city of New  York  on  or  after  January
     3  first, two thousand seventeen shall be determined as follows:
     4    (i)  for  the  first five hundred thousand gallons of beer produced in
     5  the city of New York in the taxable year, the credit shall equal  twelve
     6  cents per gallon; and
     7    (ii)  for  each gallon of beer produced in the city of New York in the
     8  taxable year in excess of five  hundred  thousand  gallons,  the  credit
     9  shall  equal  three  and eighty-six one hundredths cents per gallon. The
    10  credit allowed under this subdivision for  any  taxable  year  shall  be
    11  treated  as  an overpayment of tax to be credited or refunded in accord-
    12  ance with the provisions of section 11-526 of  this  chapter;  provided,
    13  however,  that  notwithstanding the provisions of section 11-528 of this
    14  chapter, no interest shall be paid thereon.
    15    § 2. Section 11-604 of the administrative code of the city of New York
    16  is amended by adding a new subdivision 22 to read as follows:
    17    22. Beer production credit. (a) A taxpayer subject to tax  under  this
    18  subchapter,  that  is registered as a distributor under article eighteen
    19  of the tax law, and that produces sixty million or fewer gallons of beer
    20  in this state in the taxable year, shall be allowed a credit against the
    21  tax imposed by this subchapter in the amount specified in paragraph  (b)
    22  of  this subdivision. Provided, however, that no credit shall be allowed
    23  for any beer produced in excess of fifteen million five hundred thousand
    24  gallons in the taxable year.  Notwithstanding anything in this title  to
    25  the contrary, if a partnership is allowed a credit under subdivision (p)
    26  of  section  11-503  of this title, a taxpayer that is a partner in such
    27  partnership shall not be allowed a credit under this subdivision for any
    28  taxable year that includes the last day of the taxable  year  for  which
    29  the partnership is allowed such credit.
    30    (b)  The  amount  of the credit per taxpayer per taxable year for each
    31  gallon of beer produced in the city of New  York  on  or  after  January
    32  first, two thousand seventeen shall be determined as follows:
    33    (1)  for  the  first five hundred thousand gallons of beer produced in
    34  the city of New York in the taxable year, the credit shall equal  twelve
    35  cents per gallon; and
    36    (2)  for  each  gallon of beer produced in the city of New York in the
    37  taxable year in excess of five  hundred  thousand  gallons,  the  credit
    38  shall  equal three and eighty-six one hundredths cents per gallon. In no
    39  event shall the credit allowed under this subdivision  for  any  taxable
    40  year reduce the tax due for such year to less than the amount prescribed
    41  in  clause four of subparagraph (a) of paragraph E of subdivision one of
    42  this section. However, if the amount of credit allowed under this subdi-
    43  vision for any taxable year reduces the tax to such amount,  any  amount
    44  of  credit  thus not deductible in such taxable year shall be treated as
    45  an overpayment of tax to be credited or refunded in accordance with  the
    46  provisions  of  section  11-677 of this chapter; provided, however, that
    47  notwithstanding the provisions of section 11-679  of  this  chapter,  no
    48  interest shall be paid thereon.
    49    § 3. Section 11-654 of the administrative code of the city of New York
    50  is amended by adding a new subdivision 22 to read as follows:
    51    22.  Beer  production credit. (a) A taxpayer subject to tax under this
    52  subchapter, that is registered as a distributor under  article  eighteen
    53  of the tax law, and that produces sixty million or fewer gallons of beer
    54  in this state in the taxable year, shall be allowed a credit against the
    55  tax  imposed by this subchapter in the amount specified in paragraph (b)
    56  of this subdivision. Provided, however, that no credit shall be  allowed
        A. 1719--C                          3
 
     1  for any beer produced in excess of fifteen million five hundred thousand
     2  gallons  in the taxable year.  Notwithstanding anything in this title to
     3  the contrary, if a partnership is allowed a credit under subdivision (p)
     4  of  section  11-503  of this title, a taxpayer that is a partner in such
     5  partnership shall not be allowed a credit under this subdivision for any
     6  taxable year that includes the last day of the taxable  year  for  which
     7  the partnership is allowed such credit.
     8    (b)  The  amount  of the credit per taxpayer per taxable year for each
     9  gallon of beer produced in the city of New  York  on  or  after  January
    10  first, two thousand seventeen shall be determined as follows:
    11    (1)  for  the  first five hundred thousand gallons of beer produced in
    12  the city of New York in the taxable year, the credit shall equal  twelve
    13  cents per gallon; and
    14    (2)  for  each  gallon of beer produced in the city of New York in the
    15  taxable year in excess of five  hundred  thousand  gallons,  the  credit
    16  shall  equal three and eighty-six one hundredths cents per gallon. In no
    17  event shall the credit allowed under this subdivision  for  any  taxable
    18  year reduce the tax due for such year to less than the amount prescribed
    19  in subparagraph (1) of paragraph (e) of subdivision one of this section.
    20  However,  if the amount of credit allowed under this subdivision for any
    21  taxable year reduces the tax to such amount, any amount of  credit  thus
    22  not  deductible  in such taxable year shall be treated as an overpayment
    23  of tax to be credited or refunded in accordance with the  provisions  of
    24  section  11-677 of this chapter; provided, however, that notwithstanding
    25  the provisions of section 11-679 of this chapter, no interest  shall  be
    26  paid thereon.
    27    §  4. This act shall take effect immediately, and shall apply to taxa-
    28  ble years beginning on or after January 1, 2017.