[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5872 Introduced in House (IH)]

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114th CONGRESS
  2d Session
                                H. R. 5872

 To amend the Internal Revenue Code of 1986 to modify the taxation of 
              mead and certain low alcohol by volume wine.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 14, 2016

 Mr. Nunes (for himself and Mr. Thompson of California) 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 taxation of 
              mead and certain low alcohol by volume 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 as the ``Low Alcohol Wine Act''.

SEC. 2. MODIFICATION OF TAXATION OF MEAD AND CERTAIN LOW ALCOHOL BY 
              VOLUME WINE.

    (a) In General.--Section 5041 of the Internal Revenue Code of 1986 
is amended by adding at the end the following:
    ``(h) Mead and Low Alcohol by Volume Wine.--
            ``(1) Tax and tax rate.--For purposes of subsections (a) 
        and (b)(1), mead and low alcohol by volume wine shall be 
        treated as still wines containing not more than 14 percent of 
        alcohol by volume.
            ``(2) Definitions.--For purposes of paragraph (1)--
                    ``(A) Mead.--The term `mead' means a wine--
                            ``(i) containing not more than 0.64 gram of 
                        carbon dioxide per hundred milliliters of wine, 
                        except that the Secretary may by regulations 
                        prescribe such tolerances to this limitation as 
                        may be reasonably necessary in good commercial 
                        practice,
                            ``(ii) which is derived solely from honey 
                        and water,
                            ``(iii) which contains no fruit product or 
                        fruit flavoring, and
                            ``(iv) which contains less than 8.5 percent 
                        alcohol by volume.
                    ``(B) Low alcohol by volume wine defined.--The term 
                `low alcohol by volume wine' means a wine--
                            ``(i) containing not more than 0.64 gram of 
                        carbon dioxide per hundred milliliters of wine, 
                        except that the Secretary may by regulations 
                        prescribe such tolerances to this limitation as 
                        may be reasonably necessary in good commercial 
                        practice,
                            ``(ii) which is derived--
                                    ``(I) primarily from grapes, or
                                    ``(II) from grape juice concentrate 
                                and water,
                            ``(iii) which contains no fruit product or 
                        fruit flavoring other than grape, and
                            ``(iv) which contains less than 8.5 percent 
                        alcohol by volume.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to wines removed during calendar years beginning after December 31, 
2016.
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