Kombucha

The bill would amend the Internal Revenue Code to exempt low alcohol by volume kombucha—defined as a fermented beverage with no more than 1.25% alcohol by volume made from tea, coffee, sugars, and a symbiotic culture of bacteria and yeast—from federal excise taxes and regulations that apply to wine and beer. It would affect manufacturers and sellers of such kombucha by removing their tax liability under chapters 53 of the tax code related to alcoholic beverages. The exemption would take effect for calendar quarters beginning after the bill’s enactment, subject to regulations prescribed by the Secretary of the Treasury.

AI summary · The lawmakers haven’t published an official summary of this bill yet, so 52 wrote this one from the bill’s text.