Recently, the New York State Assembly passed legislation that would lend a hand to small breweries, stimulating growth and their ability to contribute to the local economy. The bill has two objectives: to provide tax relief to small breweries and also to allow farms to grow, brew and sell locally made beer.
"New York's breweries are well on their way to becoming national and even international leaders in producing delicious craft beer," said Assemblyman Sean Ryan. "Their rise means more jobs for New Yorkers when we most desperately need them. The Assembly is doing its part to boost small breweries so they can continue to grow and thrive."
In March, a tax exemption for New York's small breweries that had been in effect since 1989 was ruled improper, thus putting a great strain on the growth of the industry. The new legislation passed by the Assembly will provide tax and fee relief by providing a tax credit or refund of 14 cents per gallon for New York brewers on the first 500,000 gallons produced within the state, and another 4.5 cents-per-gallon credit for the next 15.5 million gallons. In addition, the legislation provides an exemption from the labeling fees imposed on batches of fewer than 1,500 barrels.
"Small breweries are small businesses, and New York has a responsibility to make sure they receive the tax relief they once relied on, so that they can keep their doors open and continue creating jobs," Ryan said.
"When the Shelton Brothers lawsuit led to the rescinding of the tax exemption and label approval fee waiver, New York brewery owners large and small were understandably pretty upset," said Ethan Cox, president of Community Beer Works, located here in Buffalo at 15 Lafayette Avenue. "Thankfully, the New York Brewer's Association and specifically President Dave Katleski were incredibly quick to lobby the Assembly and craft legislation that would restore, in essence, the ability for NYS breweries to grow and foster economic activity in New York. I would like to thank Sean Ryan and the NYS Assembly and Senate for their willingness to support our industry--the reward will be obvious at the taps of our many craft beer bars and retailers."
In addition to the relief legislation, the Assembly passed a farm brewery bill that will allow farms to sell beer and cider to any NYS-licensed wholesaler or retailer. It will also allow them to sell NYS-labeled beer and cider for consumption on and off the premises, and at state fairs, county fairs and farmers markets. Farm breweries will also be permitted to host beer and cider tastings and to manufacture, bottle and sell food products and condiments, beer supplies and accessories, beer-making equipment and souvenirs.
"The farm brewery bill is great news for Western New York farms," Ryan said. "It will allow farm breweries to open and create a new market for beer and cider enthusiasts. It would also give farmers the chance to capitalize on a crop that once reigned supreme in New York: hops. Just as New York has seen success with the wine industry, farm breweries will now be able to brew beer and tap into a whole new industry that is bound to be just as lucrative as our wineries."
To qualify, farms must manufacture, store and sell New York State-labeled beer and/or cider and have an annual production capacity of 60,000 barrels or fewer. Products must be produced using ingredients or apples grown in-state to qualify for the NYS label.
"We are helping create a whole new market for Western New York farms." Ryan added. "This bill will not only boost tourism revenue throughout New York, but it will also keep our farms - the backbone of the state's agricultural industry - viable."
So basically, it's a tax giveaway to beer producers in NYS. Preferential treatment for one industry or another - it's the American way!
Breweries already pay a ridiculous amount of money in start up fees, taxes and distribution fees. This was an unnecessary tax to begin with and rescinding it was the right thing to do. Craft brewing is an industry that is actually GROWING in NYS as opposed to all the other industries who are fleeing for cheaper areas to produce goods. Kudos to the State for doing the right thing for once.
Hey, if they giveaway stuff to other businesses, maybe they'll stick around too!
What is it about specific industries that get politicians all in a lather about hurrying up to give 'em tax breaks?
The point: Give ALL businesses a break. Make it easy to create ANY business in NY. Then maybe they wouldn't be in such a hurry to leave.
Don't waste my time giving away particulars to one special interest or another. Or is brewing somehow not a "special interest" to you guys?
As an aside, why the hell does it have to take an act of our illustrious legislature(s) to "allow them to sell NYS-labeled beer and cider for consumption on and off the premises, and at state fairs, county fairs and farmers markets."
Just get the hell out of the way, NYS. Keep Food Legal. http://www.keepfoodlegal.org/
State and local governments are always giving breaks to big businesses. How much money is given to the Bills? How much were they going to give to Bass Pro to come here? And you always hear about tax incentives and utility breaks being given to a company to move here or stay here. It is all about getting breaks. Small breweries producing less than 60,000 barrels is at least giving a break to some little guys and possibly allowing some farms to survive by producing other crops.
I feel like I wasn't clear so I'll state this a different way. My point was that breweries face fees that many other businesses don't. The original idea was to lower the cost of brewing for in state brewers in an attempt to jump start craft brewing in NY. This doesn't give them an upper hand on other NY businesses just out of State breweries. It worked as the craft brew scene in NY is great both downstate and upstate.
Then a MA distributor (Shelton Brothers fuck them)challenged the law so the higher tax was imposed on NY brewers as well.
The new tax and fee relief puts NY breweries back at competitive advantage over out of State breweries but doesn't really make it any cheaper as far as the overall shitiness of doing business in NYS.
Uh... the silliness here is breathtaking.
Brewers face more regulations and fees so let's give them some specific regulations and fees that reduce their original regulations and fees.
So the answer to too much regulation is more regulation?
NYS should be a leader in craft beer. I'll take something that's going to encourage its growth.
"Of the 1,759 breweries in America, only 43 are not defined as craft brewers"
Craft beer sales in 2010 were $7.6 billion, a $600 million dollar increase in ONE YEAR.
I'll hop in this pool, especially for such an unfriendly business state.
I'll hop in this pool
It's the yeast they could do.
Nice. Yeah I didn't realize my pun until after I posted.