$15 million in savings due to craft beverage reforms in New York
These actions have allowed breweries, wineries, distilleries and cideries to save money and reinvest in their businesses to further grow the craft beverage industry throughout the Empire State.
Craft manufacturers have realized significant savings as a result of additional regulatory and legislative changes implemented under Governor Cuomo.
Reforms to the Beer Production Tax Credit to include the wine, spirits and cider industries, have saved producers $12 million since 2012, and legislation exempting small beer, cider, and spirits manufacturers from brand label registration fees has resulted in more than $2.2 million in savings for small producers since enactment in 2013.
In addition, at New York State’s first Wine, Beer and Spirits Summit in 2012, Governor Cuomo directed the State Liquor Authority to cut the fees for marketing permits in half, from $250 to $125, resulting in more than $154,000 in savings since 2012.
Marketing permits allow craft manufacturers to conduct tastings and sales at off-site locations, including fairs, street festivals, and farmers markets.
For the 2016 tax year, Governor Andrew M. Cuomo expanded the Beer Production Credit to include New York’s wine, spirits, and cider industries.
The credit, now referred to as the Alcohol Production Credit, has saved craft beverage producers $12 million since it was launched in 2012. The expanded credit is expected to save the industry $3 million per year, allowing producers to reinvest in their businesses and communities.
The credit is available annually to craft beverage businesses producing 60 million gallons or less of beer or cider, 20 million gallons or less of wine, and 800,000 gallons or less of liquor in New York State.
In addition to the production credit, the previous sales tax exemption for tastings at breweries, cideries, wineries, and distilleries was expanded to cover the alcoholic beverage tax.
Now, if a brewery hosts tastings at its facility where the craft beer that it produces is also offered for sale, the brewery would not owe any taxes on the beer served at the tastings, nor on the bottles, caps, and labels used to package the beer. ■