This bill would change how the federal wine excise tax treats mead and certain low-alcohol wines by updating section 5041(h) of the Internal Revenue Code. The new text says that, for purposes of subsections (a) and (b)(1), "low alcohol by volume wine" is to be treated as still wines containing not more than 16 percent alcohol by volume. The bill then defines "low alcohol by volume wine" as a wine that (A) contains not more than 0.64 gram of carbon dioxide per 100 milliliters (with the Secretary allowed to set tolerances) and (B) contains less than 8.5 percent alcohol by volume. The changes apply to wine removed after December 31, 2025.
Producers, distributors, and sellers of mead and some wines would see a change in how products are classified for the federal wine excise tax. The bill replaces the existing text with new definitions that refer to alcohol percentage and a carbon dioxide limit. The effective date is for wine removed after December 31, 2025. No publicly available information on how tax bills or rates would change in practice is included in the text.
No publicly available information on budgetary effects or revenue estimates is included in the bill text or provided metadata.
No publicly available information on proponents' stated reasons or arguments is included in the bill text. The bill was introduced by a group of Representatives, but the text does not include explanatory statements of view.
No publicly available information on opponents' stated concerns or arguments is included in the bill text or provided metadata.