Assemblywoman Addie J. Russell (D-Theresa) announced legislation she supported providing relief to small breweries and allowing farms to grow, brew and sell locally made beer and cider has been signed into law by Governor Cuomo. As a result, tax and fee relief that was lost last March will be restored to small breweries and a new market will be opened for North Country farms, according to Assemblywoman Russell.
“We have a great, budding craft beer industry in New York and this new law will help expand production and create new jobs for our hardworking families,” Assemblywoman Russell said. “Our small businesses, like craft breweries and farms, are the economic engines that drive the North Country and they deserve all the help we can give them so that they can continue to grow and thrive.”
Helping create farm breweries
The new law allows farms to brew their own New York State-labeled beer and cider and sell the product to any New York State-licensed wholesaler or retailer and for consumption on and off the premises (Ch. 108 of 2012). Farms will also be able to sell the new product at state fairs, county fairs and farmers markets.
“Agriculture is a big part of the North Country economy and this law opens up a new lucrative market for farms that can be just as profitable as our state’s wineries,” Assemblywoman Russell said. “New York was once the hop-growing capital of the world and this legislation will make the crop profitable once again, further aiding farm growth and expansion.”
In order to qualify for the farm brewery license, farms will have to manufacture, store and sell New York State-labeled beer and/or cider, and have an annual production capacity of 60,000 barrels or less. To be considered New York State-labeled beer or cider, the products will have to be made from New York State-grown ingredients or apples. Farm brewery licensees will also be able to conduct beer and cider tastings, manufacture, bottle and sell food products and condiments, as well as store and sell other items, such as non-alcoholic beverages, food items, beer supplies and accessories, beer-making equipment and souvenirs, further boosting farm sales, noted Assemblywoman Russell.
“This law is really a win for all sides of our farming industry,” Assemblywoman Russell said. “Not only does it open a new market for farm products and expand the number of profitable crops to grow, but it will increase tourism and expand the retail facilities at our farms, bringing new jobs to our area.”
Providing tax and fee relief for small breweries
Due to legal action brought by out-of-state brewers, a vital tax exemption for New York’s small breweries was ruled improper by a court in March. To fix this job-killing decision, a second new law provides a tax credit or refund of 14 cents per gallon for New York brewers on the first 500,000 gallons produced within the state, another 4.5 cents-per-gallon credit for the next 15.5 million gallons and provides an exemption from the labeling fees imposed on batches of less than 1,500 barrels (Ch. 109 of 2012). The new tax and fee relief for small breweries passes constitutional muster, according to Assemblywoman Russell.
“When the courts struck down these vital tax and fee exemptions it was a crushing blow to our small breweries,” Assemblywoman Russell said. “Many relied on the exemptions to keep their doors open and restoring the relief allows the businesses to continue to grow.”
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