The state Assembly has approved legislation providing relief to small breweries and allowing farms to grow ingredients, brew and sell locally made beer. Both measures are expected to become law.

The Assembly passed a farm brewery bill that allows farms to sell their beer and cider to any New York State-licensed wholesaler or retailer, as well as permit the sale of New York State-labeled beer and cider for consumption on and off the premises. The bill also allows farm breweries to sell their product, for consumption off the premises, at state fairs, county fairs and farmers markets.

“New York’s breweries are well on their way to becoming national and even international leaders in producing delicious craft beer,” Assemblywoman Addie J Russell (D-Theresa) said. “Their rise means more tourists and jobs in the North Country. The Assembly is doing its part to boost small breweries so they can continue to grow and thrive.”

“The farm brewery bill is great news for North Country farms,” Russell said. “It will allow farm breweries to open and create a new market for beer and cider enthusiasts. It would also give farmers the chance to capitalize on a crop that once reigned supreme in New York: hops. Just as New York has seen success with the wine industry, farm breweries will now be able to brew beer and tap into a whole new industry that is bound to be just as lucrative as our wineries.”

The bill will allow farm brewery licensees to 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.

Beer and cider tastings would also be permitted under the bill and would be run similarly to the current wine tastings offered by local wineries. These beer tastings could be held at farm breweries, farm wineries, or farm distilleries, Assemblywoman Russell noted.

“We are helping create a whole new market for North Country farms,” Russell said. “This bill will not only boost tourism revenue throughout New York, but it will also keep our farms – the backbone of the North Country’s agricultural industry – viable.”

In order to qualify for the farm brewery license, farms must 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 must be made from New York State-grown ingredients or apples, respectively, which will further boost farm sales, Russell said.

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, the Assembly passed legislation providing tax and fee relief to small breweries in a way that will pass constitutional muster.

The bill 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, and another 4.5 cents-per-gallon credit for the next 15.5 million gallons. Brewers that produce in excess of 60 million gallons annually would not be eligible for this credit.

The legislation also provides an exemption from the labeling fees imposed on batches of less than 1,500 barrels.

“Small breweries are small businesses, and New York has a responsibility to make sure they receive the tax relief they once relied on – so that they can continue production and create jobs,” Russell said.

The “Farm Brewery” license measure will provide opportunities for local breweries to prosper, and it will expand markets for New York farmers and their crops much like what happened in the New York wine industry when similar legislation passed in the 1970’s, according to the New York Farm Bureau.