[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5442 Introduced in Senate (IS)]

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118th CONGRESS
  2d Session
                                S. 5442

       To amend the Internal Revenue Code of 1986 to remove the 
    differentiation between mead and low alcohol by volume wine for 
                 purposes of the tax imposed on wines.


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                   IN THE SENATE OF THE UNITED STATES

                            December 5, 2024

  Mr. Schumer introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
       To amend the Internal Revenue Code of 1986 to remove the 
    differentiation between mead and low alcohol by volume wine for 
                 purposes of the tax imposed on wines.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Bubble Tax Modernization Act of 
2024''.

SEC. 2. REMOVING DIFFERENTIATION BETWEEN MEAD AND LOW ALCOHOL BY VOLUME 
              WINE.

    (a) In General.--Section 5041(h) of the Internal Revenue Code of 
1986 is amended to read as follows:
    ``(h) Low Alcohol by Volume Wine.--
            ``(1) In general.--For purposes of subsections (a) and 
        (b)(1), low alcohol by volume wine shall be deemed to be still 
        wines containing not more than 16 percent of alcohol by volume.
            ``(2) Definition.--For purposes of this section, the term 
        `low alcohol by volume wine' means a wine--
                    ``(A) containing not more than 0.64 gram of carbon 
                dioxide per hundred milliliters of wine, except that 
                the Secretary may by regulations prescribe such 
                tolerances to this limitation as may be reasonably 
                necessary in good commercial practice, and
                    ``(B) which contains less than 8.5 percent alcohol 
                by volume.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to wine removed after December 31, 2024.
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