Senator says his ‘hard cider’ legislation would create boon for NY apple producers
WASHINGTON - Legislation that seeks to boost the sales for hard cider by updating the definition of hard cider to ease the overall tax burden on hard cider producers, which are predominantly small craft operations was filed in the U.S. Senate. Senator Charles Schumer (D, NY) explained that this legislation, which now has a House of Representatives companion bill, is a boon for New York’s over 20 existing hard apple cider producers and will allow the over 650 apple growers to expand their business and add this increasingly popular craft beverage to their product line. The alcohol content of New York’s hard cider fluctuates greatly due to sugar content, and current law often forces it to be taxed at a higher rate, preventing it from being labeled as hard cider. Compliance adds a significant financial burden to producers and consumers, and an unpredictable nature to the business, which makes it more expensive for cider producers and less attractive for potential new cider producers. Schumer and Senator Patrick Leahy (D, VT) filed the CIDER Act in the Senate, and it will now be referred to Senate Finance Committee.
Schumer’s proposal, the CIDER Act (Cider, Investment & Development through Excise Tax Reduction Act), updates the definition for hard apple and pear cider in the Internal Revenue Code (IRC) that would increase their allowed alcohol by volume from 7 percent to 8.5 percent, encompassing significantly more hard cider products and allowing them to be labeled and taxed like hard cider, rather than wine. Schumer’s legislation would also address existing tax issues related to carbonation levels in hard cider, and would put the new definition in line with that of the European Union, so producers can better compete with European products abroad. Hard cider is a value-added product that is sold around the same price every year; therefore hard cider gives producers a stable source of income when apple crops suffer due to weather and other unforeseen factors. New York apple producers are increasingly interested in producing smaller, artisanal batches of hard cider, but cite the cost and difficulty to comply with the IRC definition as significant impediments to expanding their businesses.
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