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Senate Bill 892
117th Congress(2021-2022)
KOMBUCHA
Introduced
Introduced
Introduced in Senate on Mar 23, 2021
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Text
Introduced in Senate 
Mar 23, 2021
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Introduced in Senate(Mar 23, 2021)
Mar 23, 2021
About Linkage
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Bill Sponsor regularly scans bill texts to find sections that are contained in other bill texts. When a matching section is found, the bills containing that section can be viewed by clicking "View Bills" within the bill text section.
Bill Sponsor is currently only finding exact word-for-word section matches. In a future release, partial matches will be included.
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S. 892 (Introduced-in-Senate)


117th CONGRESS
1st Session
S. 892


To amend the Internal Revenue Code of 1986 to ensure that kombucha is exempt from any excise taxes and regulations imposed on alcoholic beverages.

IN THE SENATE OF THE UNITED STATES

March 23, 2021

Mr. Wyden 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 ensure that kombucha is exempt from any excise taxes and regulations imposed on alcoholic beverages.

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 “Keeping Our Manufacturers from Being Unfairly taxed while Championing Health Act” or “KOMBUCHA”.

SEC. 2. Tax-free production of kombucha.

(a) Exception from definition of brewer.—Subsection (d) of section 5052 of the Internal Revenue Code of 1986 is amended to read as follows:

“(d) Brewer.—

“(1) IN GENERAL.—For purposes of this chapter, the term ‘brewer’ means any person who brews beer or produces beer for sale.

“(2) EXCEPTION.—The term ‘brewer’ shall not include any person who—

“(A) produces only beer exempt from tax under subsection (e) of section 5053, or

“(B) produces only kombucha exempt from tax under subsection (i) of such section.”.

(b) Exemption from tax.—Section 5053 of the Internal Revenue Code of 1986 is amended—

(1) by redesignating subsection (i) as subsection (j), and

(2) by inserting after subsection (h) the following new subsection:

“(i) Production of kombucha.—

“(1) IN GENERAL.—Subject to regulation prescribed by the Secretary, any person may, without payment of tax, produce kombucha for consumption or sale.

“(2) DEFINITION.—For purposes of this chapter, the term ‘kombucha’ means a beverage which—

“(A) is fermented solely by a symbiotic culture of bacteria and yeast,

“(B) contains not more than 1.25 percent of alcohol by volume,

“(C) is sold or offered for sale as kombucha, and

“(D) is derived from—

“(i) sugar, malt or malt substitute, tea, or coffee, and

“(ii) not more than 20 percent other wholesome ingredients.”.

(c) Effective date.—The amendments made by this section shall apply to calendar quarters beginning after the date of enactment of this Act.