HR4613-119

1. Short title This Act may be cited as the Bubble Tax Modernization Act of 2025.

2. Removing differentiation between mead and low alcohol by volume wine Section 5041(h) of the Internal Revenue Code of 1986 is amended to read as follows: 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. For purposes of this section, the term low alcohol by volume wine means a wine— 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 which contains less than 8.5 percent alcohol by volume. The amendments made by this section shall apply to wine removed after December 31, 2025. (h)Low alcohol by volume wine (1)In generalFor 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)DefinitionFor 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..