Gov. Cuomo signs legislation in Utica to help grow small craft breweries
By: Jennifer Lee
Updated: July 18, 2012
A familiar face from the state's capital was right here in Central New York Wednesday morning.
Governor Andrew Cuomo was in Utica at the F.X. Matt Brewery to sign legislation to help craft breweries around the state.
The legislation is designed to support breweries through tax incentives and licenses to help breweries across New York and more importantly right here in Central New York to expand and create jobs.
"Government today it's about finding ways to partner and incentivize private sector growth. And that's the art form. That's what we are trying to do with the new New York," said Governor Cuomo.
A new New York is an initiative to promote a business-friendly environment.
"Why? Because unless the economy isn't doing well the state isn't going to do well," explained Gov. Cuomo.
And as many small craft breweries, like the F.X. Matt Brewery in Utica are suffering from paying an excise tax, many breweries across the state could have closed or moved their business out of the empire state.
"When you have a $300,000 hit like that you have to think about what are your plans and how are you going to manage to go forward. I know from other breweries they were looking at the same thing," said Nick Matt, Chairman and CEO of F.X. Matt Brewery.
Matt says they were exempted from paying the excise tax, until earlier this year when the Supreme Court repealed the exemption.
Many small craft breweries across the state had to pay up. That cost the F.X. Matt Brewery close to $300,000.
But, with the new law, small breweries will be eligible for a refundable tax credit.
"That's what this legislation does. Reduce the barriers and find ways to incentivize growth," said Gov. Cuomo.
The legislation will also exempt smaller breweries from paying an annual state liquor authority fee.
In addition, it will give farm breweries licenses that will allow craft brewers to expand their businesses by opening restaurants and selling new items.
Although this part of the law does not affect the F.X. Matt Brewery, Matt says it will create consumer interest now that the farm breweries can have tastings of all New York State labeled beer, wine and liquor.
New York has almost 100 breweries across the state. And those businesses bring in more than $200 million of economic impact each year.
