Cuomo bill would aid brewers, wine-makers

Makers of beer and wine in New York State could benefit from legislation unveiled Tuesday by Gov. Andrew M. Cuomo.

One measure seeks to boost production of craft beers with a "made in New York" designation and to spur the state's farmers to plant more hops and barley needed to make beer. A similar initiative in 1976 expanded grape growing and wineries on the East End and elsewhere.

Cuomo also proposed to exempt farm wineries and distilleries from reporting sales made to restaurants, bars and other wholesale customers. Vintners have called the filing requirement "onerous" and questioned whether it was reviewed by the state Department of Taxation and Finance.

"This legislation will give our state's growing craft beer industry the tools needed to create jobs, promote agriculture and encourage environmentally friendly economic development," the governor said.

His proposal includes elements of two 2011 bills already before the state Legislature.

The beer bill hasn't reached the floor of either the State Senate or Assembly. The wine bill, sponsored by Sen. Kenneth LaValle (R-Port Jefferson) and Assemb. Fred Thiele Jr. (I-Sag Harbor), passed the Senate in June but died in the Assembly.

Brewers said Tuesday their industry and farmers would benefit from creating a license allowing beer to be branded as New York State-made if it contains locally grown ingredients.

To qualify, at least 20 percent of the hops and 40 percent of all other ingredients in beer must have originated in the state. The locally grown requirement would climb to 90 percent by 2023.

"What this legislation does is potentially create jobs," said David Katleski, president of the state Brewers Association and founder of Empire Brewing Company in Syracuse. "There's tremendous potential. . . . Craft beers represent only 8 percent of the beer sold in the state."

Katleski said the association represents about 70 breweries, including eight on Long Island. He said some of his company's products are made in Brooklyn.

Winemakers also hailed Cuomo's drive to reduce tax filings. The Island is home to about 50 wineries.

Kareem C. Massoud of Paumanok Vineyards in Aquebogue said, "I've never understood why we had to file these reports or what was done with them."

State Agriculture Commissioner Darrel Aubertine, a dairy farmer from upstate Cape Vincent, said hard-pressed small businesses would save money with fewer tax filings. He said, "This bill will help cut burdensome costs that have been imposed."

WHAT CUOMO'S LEGISLATION WOULD DO:

Establish a farm brewery license for beers made with New York State-grown ingredients;

End requirement that farm wineries and distillers report annually their wholesale sales to the state;

Permit breweries to sell New York State-labeled wine and wineries to sell state-labeled beer for consumption elsewhere;

Allow breweries to operate restaurants, conference centers and hotels on adjacent land.

Permit beer and wine tasting events at breweries and wineries of New York State-labeled products

Allow breweries to sell beer-making equipment, food and souvenirs

Source: NYS Gov. Andrew M. Cuomo's office