Bill S3475-2013

Provides credit against personal income tax and corporate franchise tax for wine bottling, packaging and labelling expenses of wineries

Provides a credit against personal income tax and corporate franchise tax for wine bottling, packaging and labelling expenses of wineries licensed pursuant to certain provisions of the alcoholic beverage control law; allows any amount of credit not deducted in a tax year to be carried over to the following tax year or years.

Details

Actions

  • Jan 8, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Feb 4, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S3475

TITLE OF BILL: An act to amend the tax law, in relation to providing for a credit against the personal income tax and the franchise tax on corporations for certain bottling, packaging and labelling expenses of wineries

PURPOSE OR GENERAL IDEA OF BILL: To alleviate the financial burden upon the wine industry by New York State subsidizing part of the cost of wine making.

SUMMARY OF SPECIFIC PROVISIONS: Section 210 of the tax law is amended by adding subdivision 18 (a). Tax Law Section 606 is amended by adding a new subsection (vv).

JUSTIFICATION: The major wine producing countries, Spain, France, Portugal, Italy, and Germany all provide the cases, the labels, the corks and bottles as a subsidy to their wine industry. For that reason, those nations can ship to this country wines which are able to sell at an average of between $2,60 and $3.00 a bottle less than New York State wines. A New York State tax credit would enable New York State vintners to compete nationally and internationally in this competitive but controlled marketplace. Experts predict subsidies compatible to the European subsidies would enable the wine industry in New York State to grow so that sales would be 1525 times their current levels in the next 10 years. New York State Vintners utilize a growing process which is virtually chemical and pesticide free. Encouraging this wine industry expansion in New York would also trigger wine industry economic development through agricultural expansions.

PRIOR LEGISLATIVE HISTORY: 1991-92: S.2776-A, 1993-94: S.3912-A, 199596: S.3536-A,1997-98: S.1481,1999-00: S.2327, 2001-02: S.2571,2003-04: S.1791, 2005-06: S.1557-A;2007-08, S.1256; 2009-10 S.2919; 2011-12 S.3906.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 3475 2013-2014 Regular Sessions IN SENATE February 4, 2013 ___________
Introduced by Sen. LAVALLE -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the tax law, in relation to providing for a credit against the personal income tax and the franchise tax on corporations for certain bottling, packaging and labelling expenses of wineries THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 210 of the tax law is amended by adding a new subdivision 18-a to read as follows: 18-A. (A) A TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT ACTUALLY EXPENDED ON AND AFTER JANU- ARY FIRST, TWO THOUSAND FOURTEEN FOR CASES, BOTTLES, CARAFES OR OTHER CONTAINERS IN WHICH WINE PRODUCED FOR RESALE IS PACKAGED AND FOR CORKS AND LABELS USED IN AND ON SUCH CONTAINERS; PROVIDED SUCH TAXPAYER IS LICENSED AS A WINERY PURSUANT TO THE PROVISIONS OF SECTION SEVENTY-SIX OF THE ALCOHOLIC BEVERAGE CONTROL LAW. (B) IN NO EVENT SHALL THE CREDIT HEREIN PROVIDED FOR BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN THE MINIMUM FIXED BY PARAGRAPH (D) OF SUBDIVISION ONE OF THIS SECTION. IF, HOWEVER, THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. S 2. Section 606 of the tax law is amended by adding a new subsection (vv) to read as follows: (VV) (1) A TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT ACTUALLY EXPENDED ON AND AFTER JANU- ARY FIRST, TWO THOUSAND FOURTEEN FOR CASES, BOTTLES, CARAFES OR OTHER CONTAINERS IN WHICH WINE PRODUCED FOR RESALE IS PACKAGED AND FOR CORKS AND LABELS USED IN AND ON SUCH CONTAINERS; PROVIDED SUCH TAXPAYER IS
LICENSED AS A WINERY PURSUANT TO THE PROVISIONS OF SECTION SEVENTY-SIX OF THE ALCOHOLIC BEVERAGE CONTROL LAW. (2) IN NO EVENT SHALL THE AMOUNT OF THE CREDIT HEREIN PROVIDED FOR BE ALLOWED IN EXCESS OF THE TAXPAYER'S TAX FOR SUCH YEAR. HOWEVER, IF THE AMOUNT OF CREDIT OTHERWISE ALLOWABLE UNDER THIS SUBSECTION FOR ANY TAXA- BLE YEAR RESULTS IN SUCH EXCESS AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCT- IBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. S 3. This act shall take effect immediately.

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