[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 475 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 475

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 19, 1997

 Mr. Jeffords (for himself, Mr. Leahy, Mr. D'Amato, and Mr. Moynihan) 
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 draft 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 DRAFT CIDER.

    (a) Draft Cider Containing Not More Than 7 Percent Alcohol Taxed as 
Wine.--Subsection (b) of section 5041 of the Internal Revenue Code of 
1986 (relating to imposition and rate of tax) is amended by adding at 
the end the following new paragraph:
            ``(6) On draft cider derived primarily from apples or apple 
        concentrate and water, containing no other fruit product, and 
        containing at least one-half of 1 percent and not more than 7 
        percent of alcohol by volume, 22.6 cents per wine gallon, 
        except that in the case of person who produces not more than 
        100,000 wine gallons of draft cider during the calendar year, 
        the rate of tax that would have applied to each such gallon on 
        the day before the date of the enactment of this paragraph.''
    (b) Excluded From Small Producer Credit.--Paragraph (1) of section 
5041(c) of the Internal Revenue Code of 1986 (relating to credit for 
small domestic producers) is amended by striking ``subsection (b)(4)'' 
and inserting ``paragraphs (4) and (6) of subsection (b)''.
    (c) Effective Date.--The amendments made by this section shall 
apply on and after the date of the enactment of this Act.
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