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§  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).