New York Beverage Credits To Include Wine, Hard Cider

New York Governor Andrew M. Cuomo recently announced wine, hard cider, and spirits are now covered under the Beer Production Credit. The credit, now referred to as the Alcohol Production Credit, is expected to save wineries, distillers, and cideries an additional $4 million over the next two years, allowing them to reinvest in their businesses.

“New York is the epicenter of a burgeoning craft beverage industry and this administration has worked hard to cut red tape and lower costs to help encourage further growth,” Cuomo said. “These actions continue our efforts and will help wineries, cideries, and distillers in every corner of the state reinvest in their businesses and create jobs and economic activity.”

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. The expansion is effective for the 2016 tax year. It was included in the 2016-17 Enacted State Budget, and builds on the Beer Production Credit, which was launched in 2012. To date, the Beer Production Tax Credit has saved New York’s breweries $11 million.
“By expanding this valuable tax credit, Governor Cuomo is providing the craft beverage industry with yet more support for their beer, cider, wine, and spirits production, aiding in their commercial success,” said Jerry Boone, New York State Commissioner of Taxation and Finance. “These brewers, vintners and distillers will now have more money in their pockets to grow their operations and continue to provide the artisanal beverages their consumers have come to enjoy.”

In addition to the production credit, the previous sales tax exemption for tastings at breweries, cideries, wineries, and distilleries is expanded to include the alcoholic beverage tax that the producers would owe. This provision, which is effective immediately, was also included in the 2016-17 State Budget.

“This initiative is yet another example of how Governor Cuomo is using ‘entrepreneurial government’ to help the entrepreneurs in the New York grape and wine industry, which already generates more than $5 billion annually to the state economy,” said Jim Tresize, Wine & Grape Foundation President. “This tax credit will save wineries money that they can invest in their businesses and create new jobs. We greatly appreciate this support.”

If a cidery hosts tastings at its facility where the hard cider that it produces is also offered for sale, the cidery would not owe any taxes on the hard cider served at the tastings, as well as the bottles, caps, and labels used to package the beverage.

“The Alcohol Beverage Production Credit promises to spur an increase in scale and quality of cider production throughout the state,” Jenn Smith, New York Cider Association Executive Director, said. “Additionally, by eliminating taxes on tastings held where cider is made and sold, the governor has made direct interaction between producers and the public at cidery tasting rooms that much more appealing.”

Governor Cuomo’s support of the industry – through aggressive reform of antiquated laws, new marketing efforts and incentives, and reduction of red tape —has seen the industry grow 169%, across wine, beer, spirits, and cider producers statewide, since 2011.

On Oct. 17, 2013, Governor Cuomo signed the Farm Cidery Bill, which made a new license available to farm cideries that use crops grown exclusively in New York. The law has already led to the creation of eight farm cideries across the state and hard cider is now also being produced at farm wineries and breweries. Since 2011, the number of hard cider producers have increased by 480%, from five cideries in 2011 to 29 today.

Topics: ,

Leave a Reply

One comment on “New York Beverage Credits To Include Wine, Hard Cider

  1. Like other states, New York imposes an excise tax on booze sold in the state. It had an exemption for NY beer brewers, which was ruled unconstitutional. Cuomo then restructured it as a “beer production credit” for NY brewers, to make an end run around the Commerce Clause. He recently expanded the credit to other types of NY booze. Effectively, the excise tax pays for the credit given to NY booze producers.

    For example, NY imposes an excise tax on hard cider sold in the state. NY hard cider makers now get an alcohol beverage production credit. The tax and credit do not apply for apple juice and non-alcoholic cider.

    Cuomo has erected a trade barrier on booze imports from other states and countries. His production credit also serves as a booze export subsidy. He has tilted the playing field to favor NY booze makers. Cuomo made his priorities clear at his alcohol summit meeting in Albany: “Is there a connection between my governorship and people drinking more? I don’t know. But, if they’re drinking more New York product, great — I’m happy.”

    Similarly, New York City imposes an excise tax on booze sold in the city. Cuomo recently signed a law establishing a city beer production credit for NYC beer brewers. This credit is in addition to the state credit. Effectively, the city excise tax pays for the city credit given to NYC beer brewers.

Apples & Pears Stories
Apples & Pears
May 2, 2017
Washington Apple Industry Giants Merge
Chelan Fresh and Borton Fruit combine; total sales volume increases by nearly half. Read More
Apples & Pears
May 1, 2017
May Day, May Day – Look Out for Fire Blight
Now that spring has really sprung, a Washington State University expert says it’s time for apple growers to do their homework. Read More
Apples & Pears
April 26, 2017
Debunking the Myth of Calcium and Fruit Quality
Nutrient management and crop quality clearly go hand in hand. But not always in the ways you might think. In Read More
Apples & Pears
April 24, 2017
Researcher Uncovers the Origins of ‘Honeycrisp’ Apple
Thanks to the scientific data available through gene sequencing, a graduate student unlocks the mystery parentage. Read More
Apples & Pears
April 21, 2017
Interpera Congress Heads to Pacific Northwest in June
International pear conference comes to the U.S. for the first time. Read More
Apples & Pears
April 19, 2017
Young Apple Growers Meet with Lawmakers
Apple leaders from across the country discuss ag issues such as labor, trade, and research. Read More
Apples & Pears
April 18, 2017
Researchers Say it is Time to Scout for Apple Diseases
With bloom underway, the risk for fire blight and scab are high. Read More
Apples & Pears
April 6, 2017
‘Envy’ Top Variety in USApple Tournament
The ‘Royal Gala’ and ‘Braeburn’ cross is a slam-dunk winner in Apple Madness bracket tournament. Read More
Apples & Pears
April 3, 2017
Jim Allen, Matt Wells Join New York Apple Sales
Allen named Vice President of Marketing and Wells named Director of Field Service. Read More
Apples & Pears
March 28, 2017
Washington State University Offers Powdery Mildew Management Tips
Opening buds may be exposed to overwintering inoculum as temperatures begin to rise. Read More
Apples & Pears
March 27, 2017
It’s a Family Reunion at IFTA
Some of my fondest memories on the road are at IFTA conferences. Read More
Apples & Pears
March 27, 2017
Out of this World Expectations for ‘Cosmic Crisp’ Apple
With millions of trees going into PNW orchards, Washington State growers are betting big on ‘Cosmic Crisp'. The shift in varieties planted and more took center stage when the International Fruit Tree’s Annual Conference met in Wenatchee, WA. Read More
Apples & Pears
March 25, 2017
Two MAIA Releases Available for Growers, Hobbyists
‘Crunch-A-Bunch’ is an early ‘GoldRush’ and ‘Bakers Delight’ is a secret ingredient for baking. Read More
Apples & Pears
March 21, 2017
Two More Lost Apple Varieties Found In Steptoe Butte
Amateur apple detective strikes again with two more finds in abandoned orchards near state park. Read More
Apples & Pears
March 11, 2017
Stark Bro’s Debuts Two New ‘Honeycrisp’ Crosses
Both ‘Stark Ruby Darling’ and ‘Stark Scarlet Crush’ boast sweetness, crunch, and non-browning attributes. Read More
The Latest
Apples & Pears
May 23, 2017
Grower Shares Personal Impact of Labor S…
USApple leader Phil Glaize of Virginia stresses need for reform with current labor regulations, programs at Congressional briefing on agriculture labor crisis. Read More
Apples & Pears
May 15, 2017
U.S. Apple Board Member Stresses Labor R…
Michigan apple grower says agriculture’s future depends on Farm Bill funding. Read More
Apples & Pears
May 8, 2017
Abundant Robotics Gets $10M Investment f…
The goal is to pick apples with the same, if not better, fruit quality than traditional harvesting. Read More
Apples & Pears
May 2, 2017
Washington Apple Industry Giants Merge
Chelan Fresh and Borton Fruit combine; total sales volume increases by nearly half. Read More
Apples & Pears
May 1, 2017
May Day, May Day – Look Out for Fire Bli…
Now that spring has really sprung, a Washington State University expert says it’s time for apple growers to do their homework. Read More
Apples & Pears
April 26, 2017
Debunking the Myth of Calcium and Fruit …
Nutrient management and crop quality clearly go hand in hand. But not always in the ways you might think. In Read More
Apples & Pears
April 24, 2017
Researcher Uncovers the Origins of ‘Hone…
Thanks to the scientific data available through gene sequencing, a graduate student unlocks the mystery parentage. Read More
Apples & Pears
April 21, 2017
Interpera Congress Heads to Pacific Nort…
International pear conference comes to the U.S. for the first time. Read More
Apples & Pears
April 19, 2017
Young Apple Growers Meet with Lawmakers
Apple leaders from across the country discuss ag issues such as labor, trade, and research. Read More
Apples & Pears
April 18, 2017
Researchers Say it is Time to Scout for …
With bloom underway, the risk for fire blight and scab are high. Read More
Apples & Pears
April 6, 2017
‘Envy’ Top Variety in USApple Tournament
The ‘Royal Gala’ and ‘Braeburn’ cross is a slam-dunk winner in Apple Madness bracket tournament. Read More
Apples & Pears
April 3, 2017
Jim Allen, Matt Wells Join New York Appl…
Allen named Vice President of Marketing and Wells named Director of Field Service. Read More
Apples & Pears
March 28, 2017
Washington State University Offers Powde…
Opening buds may be exposed to overwintering inoculum as temperatures begin to rise. Read More
Apples & Pears
March 27, 2017
It’s a Family Reunion at IFTA
Some of my fondest memories on the road are at IFTA conferences. Read More
Apples & Pears
March 27, 2017
Out of this World Expectations for ̵…
With millions of trees going into PNW orchards, Washington State growers are betting big on ‘Cosmic Crisp'. The shift in varieties planted and more took center stage when the International Fruit Tree’s Annual Conference met in Wenatchee, WA. Read More
Apples & Pears
March 25, 2017
Two MAIA Releases Available for Growers,…
‘Crunch-A-Bunch’ is an early ‘GoldRush’ and ‘Bakers Delight’ is a secret ingredient for baking. Read More
Apples & Pears
March 21, 2017
Two More Lost Apple Varieties Found In S…
Amateur apple detective strikes again with two more finds in abandoned orchards near state park. Read More
Apples & Pears
March 11, 2017
Stark Bro’s Debuts Two New ‘Honeycrisp’ …
Both ‘Stark Ruby Darling’ and ‘Stark Scarlet Crush’ boast sweetness, crunch, and non-browning attributes. Read More