N.Y. Tax Law § 37: Alcoholic beverage production credit

§ 37. Alcoholic beverage production credit. (a) General. A taxpayer

subject to tax under article nine-A or twenty-two of this chapter, that

is registered as a distributor under article eighteen of this chapter,

and that produces sixty million or fewer gallons of beer or cider,

twenty million or fewer gallons of wine, or eight hundred thousand or

fewer gallons of liquor in this state in the taxable year, shall be

allowed a credit against such taxes in the amount specified in

subdivision (b) of this section and pursuant to the provisions

referenced in subdivision (c) of this section. Provided, however, that

no credit shall be allowed for any beer, cider, wine or liquor produced

in excess of fifteen million five hundred thousand gallons in the

taxable year. If the taxpayer is a partner in a partnership or

shareholder of a New York S corporation, then the cap imposed by the

preceding sentence shall be applied at the entity level, so that the

aggregate credit allowed to all the partners or shareholders of each

such entity in the taxable year does not exceed that cap.

(b) The amount of the credit per taxpayer per taxable year (or pro

rata share of earned credit in the case of a partnership) for each

gallon of beer, cider, wine or liquor produced in this state shall be

determined as follows:

(1) for the first five hundred thousand gallons of:

i. beer produced in this state in the taxable year, the credit shall

equal fourteen cents per gallon;

ii. cider, artificially carbonated sparkling cider, and natural

sparkling cider, containing more than three and two-tenths per centum of

alcohol by volume produced in this state in the taxable year, the credit

shall equal fourteen cents per gallon;

iii. still wine, artificially carbonated sparkling wine, and natural

sparkling wine produced in this state in the taxable year, the credit

shall equal thirty cents per gallon;

iv. liquors containing not more than twenty-four per centum of alcohol

by volume, but more than two per centum of alcohol per volume, produced

in this state in the taxable year, the credit shall equal two dollars

and fifty-four cents per gallon;

v. liquors containing more than zero per centum of alcohol by volume,

but not more than two per centum of alcohol by volume, produced in this

state in the taxable year, the credit shall equal zero;

vi. all other liquors produced in this state in the taxable year, the

credit shall equal six dollars and forty-four cents per gallon; and

(2) for each gallon of beer, cider, wine or liquor produced in this

state in the taxable year in excess of five hundred thousand gallons,

the credit shall equal four and one-half cents per gallon.

(c) Cross-references. For application of the credit provided for in

this section, see the following provisions of this chapter:

(1) Article 9-A: Section 210-B, subdivision 39.

(2) Article 22: Section 606, subsections (i) and (uu).