September 30, 2016
Albany, NY

Governor Cuomo Signs Legislation Instituting New Tax Credits for New York City Beer Manufacturers

Governor Cuomo Signs Legislation Instituting New Tax Credits for New York City Beer Manufacturers

Governor Andrew M. Cuomo today announced he signed legislation to help further grow this state's booming craft beverage industry by enabling tax credits on the local level for New York City breweries.

The bill, (A.1719C/S.6303B), adds a new beer production credit that provides New York City beer manufacturers with a 12 cents per gallon credit for the first 500,000 gallons produced and a 3.86 cents per gallon credit on the next 15 million gallons. This local credit is modeled on a similar credit on state taxes that the Governor signed into law in 2012.

"This administration has fought aggressively to lower costs and cut red tape to help New York breweries continue to grow, create jobs and generate economic activity," Governor Cuomo said. "This legislation is a continuation of this work and will help these businesses better be able to reinvest in their companies, continue to make their world class products and further strengthen this industry across New York."

Only brewers producing less than 60 million gallons annually are eligible for this credit.

Assemblyman Joseph Lentol said, "New York's breweries have a long history of providing great beer and good jobs. In recent decades they have helped revitalize small and large urban areas. I commend the Governor for signing this legislation. It will allow this creative industry to foster more growth and diversification which ultimately means better beers."

Senator Marty Golden said, "I thank Governor Andrew Cuomo for signing into law legislation that solidifies New York's commitment to our local breweries. The beer production tax credit will guarantee the creation of jobs and will help to grow our economy. Breweries have a long history of production in New York City, and this tax credit will provide an opportunity for an industry comeback at great levels."

This signing continues this administration’s efforts to strengthen New York State's craft beverage industry. Earlier this month, visited the Genesee Brew House in Rochester, where he signed legislation to modernize the Alcoholic Beverage Control Law by allowing for the sale of alcoholic beverages at on-premises establishments before noon on Sunday. Video of the event is available here and photos are available here.

The following week, Governor Cuomo signed additional measures to allow farm wineries, breweries and cideries to sell any New York-made farm alcoholic beverage by the glass at their production facility or off-site branch store. Under previous law, farm manufacturers were limited to selling only products by the glass they produce on site.

Together, these new laws will provide for increased production and sales of New York State homegrown manufactured products by making it easier to do business in this state and providing consumers with more opportunities to sample the best New York has to offer.

Brooklyn Brewery Founder and Chairman Steve Hindy said, "We are very grateful to Governor Cuomo and the Legislature for restoring this important incentive. The craft brewing industry is a dynamic and important part of the New York State economy. The craft industry—brewers, vintners, cider makers and distillers—are not only creating jobs but also helping restore communities across the Empire State. We appreciate the support we have received from the governor and our elected officials."

Other Half Brewing Company (Brooklyn) Owner Matt Monahan in said, "Governor Cuomo has been a consistent champion of small business, especially those of us who manufacture beer for a living. The New York City excise tax rebate for small brewers who call NYC home is a game changer. This means more money for growth, more money for hiring and more opportunities to continue making NYC a world class beer destination."

Flagship Brewing Company (Staten Island) Co-owner James Sykes said, "From eliminating brand label registration fees for small craft brewers to modernizing regulations to make it easier for new manufacturers to get their products in the hands of consumers, Governor Cuomo's support of New York's craft brewing industry is clear. This expanded tax credit will provide an additional boost, helping our industry continue to reinvest in our businesses, grow and create jobs."

New York City Brewers Guild President Kelly Taylor said, "The new tax credit signed into law by Governor Cuomo will put tens of thousands of dollars back into the coffers of our membership, freeing up much needed capital to help with brewery expansion, job creation and ultimately celebration of NYC Craft Beer."

New York State Brewers Association Executive Director Paul Leone said, "New York State brewers have enjoyed a state excise tax rebate for several year now, reinvesting those saved dollars back into their businesses creating more jobs and expanding their breweries. Now, with this newly passed legislation, New York City Brewers, who were taxed on top of the state excise tax, can use those extra savings to further grow their businesses in the city. We sincerely appreciate the hard work Senator Martin Golden and Assemblyman Joe Lentol put into this, and we thank Governor Cuomo for his continued support of the craft beverage industry in New York by signing this into law."

New York State farm-based alcohol beverage manufacturers, who have more than doubled in number since 2011 and have seen a 13 percent increase in the last year alone, provide local communities where they operate with increased tax revenue, job opportunities, increased demand for farm products, and a bolstered tourism impact for the state.

Building on Prior Industry Reforms to Grow New York's Economy
These laws build on the progress made by the Governor over the past five years to strengthen the craft beverage industry. Since 2011, the state has implemented a multitude of significant reforms and expanded programs to grow the craft beverage industry, including creating new farm-based manufacturing licenses, launching a $60 million statewide promotional campaign and hosting wine, beer and spirits summits across the state.

In 2011, New York City had six breweries located in Brooklyn and Manhattan. Under the leadership of Governor Cuomo, today there are twenty-nine breweries operating in all five boroughs, with the number of New York City craft breweries increasing by 20 percent over the last year. Since 2011, the number of microbreweries statewide experienced a nearly fourfold increase, from 40 to 154, restaurant breweries grew by 260 percent, from 10 to 36, and New York is now home to 132 farm breweries, a new license created by the Governor in 2013 to boost demand for locally grown agricultural products.


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