Introducing the Bubble Tax Modernization Act: A Boost for American Cidermakers

Strategic Insights -

Congressman Derrick Van Orden and Congresswoman Andrea Salinas have introduced the Bubble Tax Modernization Act, a legislation aimed at lowering the tax rate for lower-alcohol wine, cider, and mead made with fruit. The current tax code dictates that if a sparkling cider, wine, or mead is made with fruits other than apples and pears, it can only be minimally carbonated, leading to a higher tax burden for cidermakers. The Act will allow cidermakers to create and carbonate fruited beverages without this higher tax burden, granting them more freedom to produce drinks to match public demand.

Key Takeaways:

  • The Bubble Tax Modernization Act will lower the tax rate for lower-alcohol wine, cider, and mead made with fruit, benefiting American cidermakers.
  • The current tax code requires cidermakers to use only apples and pears to avoid a triple tax burden, limiting their ability to produce drinks with other fruits.
  • The legislation is endorsed by the American Cider Association, Northwest Cider Association, North Carolina Cider Association, New York Cider Association, and Pennsylvania Cider Guild.
  • Rep. Van Orden stated that the bill works for everyone - farmers, cidermakers, and consumers - by allowing any type of fruit to be added to cider and taxed at the standard rate.
  • Rep. Salinas emphasized that the bill levels the playing field for the cider industry, making it more affordable to produce the sparkling, fruited drinks consumers want.
  • The bill is seen as a critical fix to bring fairness to how cider is taxed in the U.S., eliminating outdated penalties and giving small cidermakers the freedom to innovate without being punished.

Statistics:

  • The tax code currently requires cidermakers to use only apples and pears to avoid a triple tax burden, limiting their ability to produce drinks with other fruits is not specified in the provided text.
  • The Bill is endorsed by various cider associations, including the American Cider Association, which represents over [XXX] cidermakers nationwide (source: American Cider Association).
  • The legislation aims to support American agriculture, strengthen rural economies, and help keep cider accessible to consumers (source: Rep. Salinas).
  • The bill is seen as common-sense legislation that will support small cidermakers and give them the freedom to innovate without being punished (source: Monica Cohen, CEO of the American Cider Association).

Sources:

  • Congressman Derrick Van Orden's News Release
  • Rep. Andrea Salinas' Office
  • American Cider Association
  • Northwest Cider Association
  • North Carolina Cider Association
  • New York Cider Association
  • Pennsylvania Cider Guild