Assembly Bill A10181

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  10181

                          I N  A S S E M B L Y

                              May 10, 2012
                               ___________

Introduced  by  M. of A. LENTOL, BRINDISI, MORELLE -- Multi-Sponsored by
  -- M. of A. LIFTON -- read once and referred to the Committee on  Ways
  and Means

AN ACT to amend the tax law, in relation to a beer production tax credit

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The tax law is amended by adding a new section 37  to  read
as follows:
  S  37.  BEER PRODUCTION CREDIT. (A) GENERAL. A TAXPAYER SUBJECT TO TAX
UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER SHALL  BE  ALLOWED  A
CREDIT  AGAINST SUCH TAX PURSUANT TO THE PROVISIONS REFERENCED IN SUBDI-
VISION (B) OF THIS SECTION. THE CREDIT (OR  PRO  RATA  SHARE  OF  EARNED
CREDIT IN THE CASE OF A PARTNERSHIP) FOR EACH GALLON OF BEER PRODUCED IN
NEW  YORK  STATE BY A LICENSED BREWERY OR A LICENSED TENANT BREWER ON OR
AFTER APRIL FIRST, TWO THOUSAND TWELVE SHALL BE EQUAL TO FOURTEEN  CENTS
MULTIPLIED  BY  THE NUMBER OF GALLONS PRODUCED NOT TO EXCEED SIX MILLION
TWO HUNDRED THOUSAND GALLONS. IF THE TAXPAYER IS PARTNER IN  A  PARTNER-
SHIP OR SHAREHOLDER OF A NEW YORK S CORPORATION, THEN THE CAP IMPOSED BY
THE PRECEDING SENTENCE SHALL BE APPLIED AT THE ENTITY LEVEL, SO THAT THE
AGGREGATE  CREDIT  ALLOWED  TO  ALL THE PARTNERS OR SHAREHOLDERS OF EACH
SUCH ENTITY IN THE TAXABLE YEAR DOES NOT EXCEED SIX MILLION TWO  HUNDRED
THOUSAND GALLONS TIMES FOURTEEN CENTS.
  (B)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  (1) ARTICLE 9-A: SECTION 210, SUBDIVISION 45.
  (2) ARTICLE 22: SECTION 606, SUBSECTIONS (I) AND (UU).
  S 2. Section 210 of the tax law is amended by adding a new subdivision
45 to read as follows:
  45. BEER PRODUCTION CREDIT. A TAXPAYER SHALL BE ALLOWED A  CREDIT,  TO
BE COMPUTED AS PROVIDED IN SECTION THIRTY-SEVEN OF THIS CHAPTER, AGAINST
THE  TAX IMPOSED BY THIS ARTICLE. THE CREDIT ALLOWED UNDER THIS SUBDIVI-
SION FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR  TO
LESS THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D)
OF  SUBDIVISION  ONE  OF  THIS SECTION. HOWEVER, IF THE AMOUNT OF CREDIT

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD15721-01-2

A. 10181                            2

ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE  TAX  TO
SUCH  AMOUNT,  ANY  AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE
YEAR SHALL BE TREATED AS  AN  OVERPAYMENT  OF  TAX  TO  BE  CREDITED  OR
REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
  S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended by adding a new clause (xxxiv) to read as
follows:
(XXXIV) BEER PRODUCTION TAX CREDIT   AMOUNT OF CREDIT UNDER
UNDER SUBSECTION (UU)                SUBDIVISION FORTY-FIVE OF SECTION
                                     TWO HUNDRED TEN
  S 4. Section 606 of the tax law is amended by adding a new  subsection
(uu) to read as follows:
  (UU)  BEER  PRODUCTION CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT TO
BE COMPUTED AS PROVIDED IN SECTION THIRTY-SEVEN OF THIS CHAPTER  AGAINST
THE  TAX  IMPOSED  BY  THIS ARTICLE. IF THE AMOUNT OF THE CREDIT ALLOWED
UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED  THE  TAXPAYER'S
TAX  FOR SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX
TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF  SECTION
SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER THAT NO INTER-
EST SHALL BE PAID THEREON.
  S 5. This act shall take effect immediately.