[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4934 Introduced in House (IH)]

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114th CONGRESS
  2d Session
                                H. R. 4934

To amend the Internal Revenue Code of 1986 to modify the excise tax on 
                                 wine.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 13, 2016

 Mr. Thompson of California (for himself and Mr. Reichert) introduced 
  the following bill; which was referred to the Committee on Ways and 
                                 Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to modify the excise tax on 
                                 wine.

    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 at the ``Wine Excise Tax Modernization Act of 
2016''.

SEC. 2. MODIFICATION OF SMALL WINE PRODUCER CREDIT.

    (a) In General.--Section 5041(c) of the Internal Revenue Code of 
1986 is amended by striking paragraphs (1) and (2) and inserting the 
following new paragraphs:
            ``(1) Allowance of credit.--In the case of any person who 
        produces wine in, or imports wine into, the United States 
        during the calendar year, there shall be allowed as a credit 
        against any tax imposed by this title (other than chapters 2, 
        21, and 22) of--
                    ``(A) $1 per wine gallon on the 1st 30,000 wine 
                gallons of wine which are removed during such year for 
                consumption or sale and which have been produced in, or 
                imported into, the United States,
                    ``(B) 90 cents per wine gallon on wine in excess of 
                30,000 wine gallons and not in excess of 130,000 wine 
                gallons so removed and produced or imported, and
                    ``(C) 53.5 cents per wine gallon on wine in excess 
                of 130,000 wine gallons and not in excess of 750,000 
                wine gallons so removed and produced or imported.
            ``(2) Adjustment of credit for hard cider.--In the case of 
        wine described in subsection (b)(6), paragraph (1) shall be 
        applied--
                    ``(A) by substituting `6.2 cents' for `$1' in 
                subparagraph (A) thereof,
                    ``(B) by substituting `5.6 cents' for `90 cents' in 
                subparagraph (B) thereof,
                    ``(C) by substituting `3.3 cents' for `53.5 cents' 
                in subparagraph (C) thereof, and
                    ``(D) by taking such wine into account last in 
                applying such subparagraphs.''.
    (b) Conforming Amendment.--Section 5041(c)(7) of such Code is 
amended by striking ``, including regulations--'' and all that follows 
and inserting a period.
    (c) Effective Date.--The amendments made by this section shall 
apply to wine removed during calendar years beginning after December 
31, 2016.

SEC. 3. ALCOHOL BY VOLUME LIMITATION FOR TABLE WINE EXCISE TAX RATE 
              INCREASED TO 16 PERCENT.

    (a) In General.--Paragraphs (1) and (2) of section 5041(b) of the 
Internal Revenue Code of 1986 are each amended by striking ``14 
percent'' and inserting ``16 percent''.
    (b) Effective Date.--The amendments made by this section shall 
apply to wine removed during calendar years beginning after December 
31, 2016.

SEC. 4. INCREASE IN CARBONATION LIMITATION FOR TAXATION AS STILL WINE.

    (a) In General.--Section 5041(a) of the Internal Revenue Code of 
1986 is amended by striking ``0.392 gram'' and inserting ``0.64 gram''.
    (b) Effective Date.--The amendments made by this section shall 
apply to wine removed during calendar years beginning after December 
31, 2016.

SEC. 5. REDUCED RATE OF EXCISE TAX ON SPARKLING AND ARTIFICIALLY 
              CARBONATED WINES.

    (a) In General.--Section 5041(b) of the Internal Revenue Code of 
1986 is amended--
            (1) by striking ``$3.40'' in paragraph (4) and inserting 
        ``$1.07'', and
            (2) by striking ``$3.30'' in paragraph (5) and inserting 
        ``$1.07''.
    (b) Effective Date.--The amendments made by this section shall 
apply to wine removed during calendar years beginning after December 
31, 2016.
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