LAKE PLACID, N.Y. -
Beer is being made inside the Lake Placid Pub & Brewery.
"We have some Ubu Ale that's fermenting and some Lake Placid IPA that is fermenting, as well," said Christopher Ericson of the Lake Placid Pub & Brewery.
But a brouhaha is developing within the industry.
"That's an enormous amount of money to work into your business plan," Ericson said.
The state's highest court recently ruled a 14 cents a gallon tax exemption for New York's small breweries is unconstitutional. The court also said they have to start paying a $150 registration fee for every individual brand of beer produced. For Ericson, between his two breweries, this means an additional $42,000 he needs to come up with annually.
"Without a doubt it's going to limit the amount of beer that breweries decide to release," he said. "If all of a sudden you are taking $150 out of a tight margin, specialty and seasonal beers, at some point it's just not going to make sense to continually produce new beers."
New York's congressional delegation and state Legislature are now working on providing financial assistance for brewers across the Empire State to prevent this fast-growing industry from going flat.
"It is very, very important as start up businesses that we do everything we can to keep them there," said Assemblywoman Teresa Sayward, R-Willsboro.
There is bipartisan legislation in Albany that would provide a 14 cents per gallon tax credit for brewers for up to 200,000 barrels a year.
"We do give tax credits currently to the film industry in New York City so we believe we have a good argument for doing this for our small brewers," Sayward said.
On the federal level, New York Senator Chuck Schumer is pushing the Beer Act. It would benefit small breweries all across the country by cutting the federal excise tax of $7 a barrel in half; benefits that Ericson hopes are on tap soon. He is in the process of expanding, so his brewery can increase production from brewing five times a week to eight.
"It definitely comes at a time when I'm trying to maximize my reinvestment in the company," Ericson said.
A brewing debate that brewers hope leaves a good taste in their mouths.
Ericson says for now he does not plan to raise his prices or lay off employees.
