WC Wisconsin News

Today, Congressman Derrick Van Orden and Congresswoman Andrea Salinas introduced the Bubble Tax Modernization Act in Washington, D.C. This legislation aims to reduce the tax rate for lower-alcohol wine, cider, and mead made with fruit.

Under current tax regulations, if a sparkling cider, wine, or mead is produced using fruits other than apples and pears, it can only be minimally carbonated. This often results in beverages that taste flat to consumers. Should cidermakers choose to carbonate their fruited drinks to levels similar to non-fruited ciders, taxes on these beverages triple due to what is known as the 'bubble tax'.

Many craft beverage producers find it financially challenging to carbonate their products at market-desired levels. As a result, this segment of the American agricultural sector struggles. The proposed act seeks to enable cidermakers to produce and carbonate fruited beverages without facing increased tax burdens, thereby aligning production with consumer demand.

“Cidermakers should not be limited to just pears and apples in order to avoid a massive, unnecessary tax hike on their products,” said Rep. Van Orden. “This 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.”

“Oregon has some of the highest quality fruit in the country, but red tape in our tax code makes it nearly impossible to use these products to make the fruited wines, ciders, and meads that people want,” said Rep. Salinas. “My bill levels the playing field for the cider industry and makes it more affordable to produce the sparkling, fruited drinks consumers want.”

“The Bubble Tax Modernization Act is a critical, overdue fix that will finally bring fairness to how cider is taxed in the U.S.,” said Monica Cohen, CEO of the American Cider Association. “It eliminates outdated penalties on carbonated, fruit-forward ciders and gives small cidermakers the freedom to innovate without being punished. This bill supports American agriculture strengthens rural economies and helps keep cider accessible to consumers. It’s common-sense legislation and we applaud Representatives Salinas and Van Orden for moving this forward."

The legislation has received endorsements from several organizations including the American Cider Association and regional cider associations across North Carolina, New York, Pennsylvania as well as Northwest regions.

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