New York small brewers are asking beer consumers to support their efforts to to pass Senate Bill 7344 and Assembly Bill 10181 to create a Beer Production Tax Credit. These bills would allow New York’s craft breweries to remain competitive by utilizing a tax credit of 14 cents per gallon of beer produced in New York State for the first 200,000 barrels of beer. The fate of this important bill now lies in the hands of the Legislature and the Governor.
The legislative session has been extended through June 21 and brewers ask consumers to phone and email Assembly Speaker Silver, Senate Majority Leader Skelos, and Governor Andrew Cuomo, in addition to the Assembly Member and Senator for their own district, and ask them to vote “yes” immediately on S. 7344 and A. 10181.
An unexpected and significant tax burden has recently been placed on New York State craft brewers, which will have a serious impact on the ability of these small businesses to add jobs, expand and keep prices down. Previously, an excise tax exemption was granted for the first 200,000 barrels of beer produced in New York, but a recent settlement by the state struck down the exemption.
Senate Bill 7344 and Assembly Bill 10181 would create a Beer Production Tax Credit that would allow New York’s craft breweries to utilize a tax credit of 14 cents per gallon of beer produced in New York State for the first 200,000 barrels of beer.
This is a jobs creation bill that will allow small brewers the ability to grow their business through increased access to market. This will benefit both small brewers and beer drinkers.
The small brewing industry pumps more than $200 million in sales into the state’s economy and accounts for around 3,000 direct jobs – and nearly 100,000 indirect jobs when positions that rely on this industry such as wholesalers, retailers and suppliers are also included.
Without this tax credit, New York’s more than 90 craft breweries will face severe budget shortfalls and could be forced to raise prices up to $1 for a pint and six pack.