N.Y. Tax Law 37 – Alcoholic beverage production credit
§ 37. Alcoholic beverage production credit. (a) General. A taxpayer subject to tax under article nine-A or twenty-two of this chapter, that is registered as a distributor under article eighteen of this chapter, and that produces sixty million or fewer gallons of beer or cider, twenty million or fewer gallons of wine, or eight hundred thousand or fewer gallons of liquor in this state in the taxable year, shall be allowed a credit against such taxes in the amount specified in subdivision (b) of this section and pursuant to the provisions referenced in subdivision (c) of this section. Provided, however, that no credit shall be allowed for any beer, cider, wine or liquor produced in excess of fifteen million five hundred thousand gallons in the taxable year. If the taxpayer is a partner in a partnership 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 that cap.
Terms Used In N.Y. Tax Law 37
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
(b) The amount of the credit per taxpayer per taxable year (or pro rata share of earned credit in the case of a partnership) for each gallon of beer, cider, wine or liquor produced in this state shall be determined as follows:
(1) for the first five hundred thousand gallons of:
i. beer produced in this state in the taxable year, the credit shall equal fourteen cents per gallon;
ii. cider, artificially carbonated sparkling cider, and natural sparkling cider, containing more than three and two-tenths per centum of alcohol by volume produced in this state in the taxable year, the credit shall equal fourteen cents per gallon;
iii. still wine, artificially carbonated sparkling wine, and natural sparkling wine produced in this state in the taxable year, the credit shall equal thirty cents per gallon;
iv. liquors containing not more than twenty-four per centum of alcohol by volume, but more than two per centum of alcohol per volume, produced in this state in the taxable year, the credit shall equal two dollars and fifty-four cents per gallon;
v. liquors containing more than zero per centum of alcohol by volume, but not more than two per centum of alcohol by volume, produced in this state in the taxable year, the credit shall equal zero;
vi. all other liquors produced in this state in the taxable year, the credit shall equal six dollars and forty-four cents per gallon; and
(2) for each gallon of beer, cider, wine or liquor produced in this state in the taxable year in excess of five hundred thousand gallons, the credit shall equal four and one-half cents per gallon.
(c) 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-B, subdivision 39.
(2) Article 22: Section 606, subsections (i) and (uu).