[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 401 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 401

 To amend the Internal Revenue Code of 1986 to clarify the excise tax 
                     treatment of hard apple cider.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

            February 14 (legislative day, January 30), 1995

Mr. Leahy (for himself and Mr. Jeffords) 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 clarify the excise tax 
                     treatment of hard apple cider.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CLARIFICATION OF TAX TREATMENT OF HARD APPLE CIDER.

    (a) Hard Apple Cider Containing Not More Than 7 Percent Alcohol 
Taxed as Beer.--Subsection (a) of section 5052 of the Internal Revenue 
Code of 1986 (relating to definitions) is amended to read as follows:
    ``(a) Beer.--For purposes of this chapter (except when used with 
reference to distilling or distilling material)--
            ``(1) In general.--The term `beer' means beer, ale, porter, 
        stout, and other similar fermented beverages (including sake or 
        similar products) of any name or description containing one-
        half of 1 percent or more of alcohol by volume brewed or 
        produced from malt, wholly or in part, or from any substitute 
        therefor.
            ``(2) Hard apple cider.--The term `beer' includes a 
        beverage--
                    ``(A) derived wholly (except for sugar, water, or 
                added alcohol) from apples containing at least one-half 
                of 1 percent and not more than 7 percent of alcohol by 
                volume, and
                    ``(B) produced by a person who produces more than 
                100,000 wine gallons of such beverage during the 
                calendar year.''.
    (b) Conforming Amendment.--Subsection (a) of section 5041 of the 
Internal Revenue Code of 1986 (relating to imposition and rate of tax) 
is amended by striking ``wine)'' and inserting ``wine, but not 
including hard apple cider described in section 5052(a)(2))''.
    (c) Effective Date.--The amendments made by this section shall 
apply on and after the date of enactment of this Act.
                                 <all>