[Congressional Record Volume 161, Number 14 (Wednesday, January 28, 2015)]
[Extensions of Remarks]
[Page E131]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                             THE CIDER ACT

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                          HON. EARL BLUMENAUER

                               of oregon

                    in the house of representatives

                      Wednesday, January 28, 2015

  Mr. BLUMENAUER. Mr. Speaker, today I am introducing the CIDER Act, 
legislation that will support the growing number of craft and 
entrepreneurial cider makers across the country. The cider industry has 
tripled in size since 2007 and there has been tremendous growth in 
Oregon. As these businesses get off the ground, I am working with them 
to ensure a strong federal partnership and to break down arbitrary 
barriers that prevent this industry from realizing its potential.
  During the fermentation process, a variety of factors can lead to 
small changes in the composition of a cider's alcohol content and 
carbonation. Because of the narrow way that hard cider is currently 
defined in the tax code, these small variations can lead to cider being 
taxed at a rate fifteen times higher than what the statute clearly 
intended. The legislation will better tailor IRS rules to reflect 
variations in craft ciders. This legislation will update the tax 
definitions to reflect the growing diversity of the U.S. cider market, 
better match international rules and strengthen U.S. export 
opportunities, and broaden the definition to include both pear and 
apple ciders.
  Production nationally has been robust, more than tripling from 9.4 
million gallons in 2011 to 32 million gallons in 2013. Cider revenues 
in the U.S. have been just as impressive, tripling from $178 million in 
2007 to $601 million in 2012. Providing clear regulations and a tax 
structure that mirrors the real world for this agricultural product 
will allow this industry to continue its expansion while making ciders 
that people want to drink.
  Cider making is sometimes closer to an art than a science. As the 
American apple and pear hard cider industry becomes more prominent on 
the world stage, and cider becomes a beverage choice for more 
Americans' developing palettes, we need to ensure that cideries have 
every opportunity to expand and meet the needs of this growing market 
without an unfair tax burden.

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