NEW YORK—Craft brewers statewide, and particularly those supported by farms, will receive a refundable tax credit, and support to expand their businesses, after a law was signed by Gov. Andrew M. Cuomo Wednesday.
All breweries that annually produce 60 million gallons or less in the state can get a refundable 14 cents per gallon tax credit under the new law. After 500,000 gallons the tax credit decreases to 4.5 cents per gallon for the next 15 million gallons.
A large portion of the bill enables farm breweries to operate like farm wineries if they choose. A special license will allow brewers to conduct businesses such as direct beer sales, selling beer-related equipment at restaurants, hotels, or conference centers, and beer tastings.
To obtain a license, the farm’s beer must be made from local ingredients to the tune of at least 20 percent of the hops and other ingredients. After 2018, the beer must use 60 percent locally grown hops. After 2023, the requirement will increase to 90 percent.
“This new law helps to strengthen this growing industry, while at the same time increasing demand for locally grown farm products, creating jobs, expanding industry-related tourism, and providing a boost to our state’s economy,” said Sen. Patty Ritchie, the bill’s sponsor, in a release.
The Matt Brewing Company in Utica will save $493,900 on taxes every year thanks to the new law, according to the governor’s office.
New York’s craft beer sector has almost doubled in the past 10 years and accounts for about 3,000 jobs, and supports an additional 100,000 related jobs, according to the New York Brewer’s Association.
Brooklyn Brewery, founded in 1988, now exports its beer to 25 states and 20 countries. After completing its expansion in 2013, the brewery will quintuple its capacity. The brewery claims on its website to be the No. 1 exporter of craft beer in the country.
The Epoch Times publishes in 35 countries and in 19 languages. Subscribe to our e-newsletter.
