Text of Senate Amendment 4540

Text of Senate Amendment 4540

Congressional Record, Volume 172 Issue 49 (Wednesday, March 18, 2026) [Congressional Record Volume 172, Number 49 (Wednesday, March 18, 2026)] [Senate] [Page S1267] From the Congressional Record Online through the Government Publishing Office [ www.gpo.gov ] SA 4540. Mr. WYDEN submitted an amendment intended to be proposed by him to the bill S. 1383, to establish the Veterans Advisory Committee on Equal Access, and for other purposes; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ___. TAX-FREE PRODUCTION OF LOW ALCOHOL BY VOLUME KOMBUCHA. (a) Exemption From Tax on Wine.--Section 5042(a) of the Internal Revenue Code of 1986 is amended by adding at the end the following: ``(4) Low alcohol by volume kombucha.-- ``(A) In general.--Subject to regulations prescribed by the Secretary, low alcohol by volume kombucha shall not be subject to-- ``(i) tax as wine, or ``(ii) the provisions of subchapter F. ``(B) Definition.--For purposes of this chapter, the term `low alcohol by volume kombucha' means a beverage which-- ``(i) is fermented solely by a symbiotic culture of bacteria and yeast, ``(ii) contains not more than 1.25 percent of alcohol by volume, ``(iii) is sold or offered for sale as kombucha, and ``(iv) is derived from-- ``(I) fermentable sugars, including sugar, malt or malt substitute, honey, and fruit juice, and ``(II) plant materials, including tea and coffee.''. (b) Exemption From Tax on Beer.--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 Low Alcohol by Volume Kombucha.-- Subject to regulations prescribed by the Secretary, low alcohol by volume kombucha (as defined in section 5042(a)(4)(B)) shall not be subject to-- ``(1) tax as beer, or ``(2) the provisions of subchapter G.''. (c) Effective Date.--The amendments made by this section shall apply to calendar quarters beginning after the date of enactment of this Act. ______