Governor Andrew M. Cuomo signed two bills today to support
the production of New York-grown hops and expand business opportunities for
farm distilleries across the state.
"This administration's efforts to roll back regulations
and lower costs for New York's craft beverage industry continues to fuel the
growth of breweries, distilleries, as well as cideries and wineries, in every
corner of this state," Governor Cuomo said. "By providing new
opportunities to increase the production of crops and craft beverages, this new
legislation will help further diversify New York-made products, support our
farms, spur job growth, and continue to grow the state's booming $100 billion
tourism industry."
"The agriculture industry is vital to our state's
economy, and our local craft beverage producers provide some of the best
products for customers in New York and beyond," said Lieutenant Governor
Kathy Hochul. "We're continuing to support and grow the industry with
assistance for farmers to expand production of hops and provide more
opportunities for growth for craft beverage producers across the state."
Expanding the Production of Hops
Under current law, certain orchards and vineyards qualify
for a real property tax exemption without meeting a $10,000 sales requirement
due to the fact that these crops take longer than most to reach their full
potential. Similar to crops produced on orchards and vineyards, hops also do
not reach full production until years after planting.
This bill (A.10097/S.8841), will provide relief from the
annual gross sales requirement and encourage farmers to plant new hopyards in
New York State. When using at least seven acres or more of land to produce
hops, farmers can receive tax benefits in their first, second, third or fourth
year of production. The bill, which takes effect immediately, will also provide
a limited tax exemption for farmers replanting or expanding their production of
hops for the first six years.
This action will help New York's agricultural sector respond
to the growing demand of farm breweries, which require New York-grown hops to
qualify for a farm brewery license.
Supporting the Growth of Farm Distilleries
Additionally, Governor Cuomo signed legislation
(A.10128A/S.7793A), to allow businesses with a farm distillery license to
contract with a member of the public to produce a custom liquor for that
individual's consumption.
Under current law, New York wineries are authorized to
manufacture custom wine for an unlicensed individual. These latest actions will
support the state's growing craft beverage industry and the number of
farm-based manufacturers, which have increased by more than 160 percent since
Governor Cuomo hosted the first Beer, Wine Spirits and Cider Summit in 2012.
New York's craft beverage industry has grown to more than 1,000 producers,
including more than 400 farm, micro and restaurant breweries, and 132 farm
distilleries - 104 of which have been added since 2012.
This new legislation builds on changes implemented since the
Governor took office in 2011, including lowering taxes and fees, creating new
licenses for farm breweries and cideries, rolling back restrictive regulations,
providing support for research, cutting the time it takes to obtain a license
in half, and overhauling the state's archaic Alcoholic Beverage Control law.
