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H.R. 7029House118th Congress (2023-2025)In Committee

Bubble Tax Modernization Act of 2024

Sponsored by Earl BlumenauerRep. Earl Blumenauer (D-OR)
Introduced January 18, 2024

AI-Generated Summary

Updated January 20, 2026 at 2:11 PM UTC

The Bubble Tax Modernization Act of 2024 changes the Internal Revenue Code so that mead is no longer treated separately from low‑alcohol‑by‑volume wine for tax purposes. Both mead and low‑alcohol wine will be taxed the same way as regular wine with up to 16% alcohol. The change applies to wine removed from storage after December 31, 2024 and affects producers, distributors, and the IRS.

Key Provisions

  • Amends IRC §5041(h) to eliminate the special tax category for mead, treating it as low‑alcohol‑by‑volume wine.
  • Defines low‑alcohol‑by‑volume wine as containing no more than 0.64 g of carbon dioxide per 100 mL and less than 8.5% alcohol, with the Secretary allowed to adjust tolerances by regulation.
  • Sets the amendment’s effective date to apply to wine removed after December 31, 2024.

Legislative Activity

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1 earlier action
HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

January 18, 2024

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HouseIntro Referral

Introduced in House

January 18, 2024

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

January 18, 2024

Bill Text

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Introduced in HouseIssued January 18, 2024

I

118th CONGRESS

2d Session

H. R. 7029

IN THE HOUSE OF REPRESENTATIVES

January 18, 2024

Mr. Blumenauer (for himself and Mr. Kelly of Pennsylvania) introduced the following bill; which was referred to the Committee on Ways and Means

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.

1.

Short title

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

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 amendments made by this section shall apply to wine removed after December 31, 2024.