← Back to Bills
S. 5442Senate118th Congress (2023-2025)In Committee

Bubble Tax Modernization Act of 2024

Sponsored by Charles E. SchumerSen. Charles E. Schumer (D-NY)
Introduced December 5, 2024

AI-Generated Summary

Updated January 20, 2026 at 8:15 PM UTC

The Bubble Tax Modernization Act of 2024 changes the federal wine tax rules by eliminating the separate tax treatment for mead and low‑alcohol‑by‑volume (LABV) wine. It amends the Internal Revenue Code so that mead is treated the same as LABV wine for tax purposes. The change affects producers, importers, and sellers of mead and low‑alcohol wine, altering how they calculate and pay the wine excise tax.

Key Provisions

  • Amends IRC §5041(h) to remove the distinction between mead and low‑alcohol‑by‑volume wine for tax calculations.
  • Defines low‑alcohol‑by‑volume wine as wine with up to 0.64 g CO₂ per 100 mL and less than 8.5% alcohol, and treats mead under this definition.
  • Sets the amendment to apply to wine removed from storage after December 31, 2024.

Legislative Activity

Stay on top of the latest movement without scrolling through every action

1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance. (text: CR S6844)

Finance Committee

December 5, 2024

View full timeline
SenateIntro Referral

Introduced in Senate

December 5, 2024

SenateIntro Referral

Read twice and referred to the Committee on Finance. (text: CR S6844)

Finance Committee

December 5, 2024

Floor Debate

2 members

What members said about S. 5442 on the floor

2 Democrats
Charles E. Schumer
Sen. Charles E. SchumerD-NY · Dec 5, 2024

Madam President, I ask unanimous consent that the text of the bill be printed in the Record.

Record
Richard J. Durbin
Sen. Richard J. DurbinD-IL · Dec 5, 2024

Madam President, I ask unanimous consent that the text of the bill be printed in the Record.

Record
Charles E. Schumer
Sen. Charles E. SchumerD-NY · Dec 5, 2024

Madam President, I ask unanimous consent that the text of the bill be printed in the Record.

Record

Bill Text

Latest available legislative text

Reading Mode
Latest
Raw Text PDF XML
Introduced in SenateIssued December 5, 2024

II

118th CONGRESS

2d Session

S. 5442

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.

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