S. 4457

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4457 Introduced in Senate (IS)]

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119th CONGRESS
2d Session
S. 4457

To amend the Internal Revenue Code of 1986 to ensure that low alcohol 
by volume kombucha is exempt from any excise taxes and any regulations 
under chapter 53 of such Code which are imposed on alcoholic beverages.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

April 30, 2026

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 low alcohol 
by volume kombucha is exempt from any excise taxes and any regulations 
under chapter 53 of such Code which are 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 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.
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