The legislation is expected to be a big boost for small and mid-sized wineries that have long sought access to the New York market.
Nancy Light is a spokeswoman for the San Francisco-based Wine Institute.
"It's the third largest market in the United States and it's a market with a lot of very interested and dedicated wine consumers."
The law will open many other markets for New York producers, including California.
The legislation comes in the wake of a recent U-S Supreme Court decision that required New York and Michigan, to even the playing field between in-state and out-of-state wineries in regard to direct shipments.
The law also prohibits those under 21 to receive the beverage by direct shipping.
New York Governor George Pataki is expected to sign the bill within a week.