[Congressional Record Volume 172, Number 49 (Wednesday, March 18, 2026)]
[Senate]
[Page S1267]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 4540. Mr. WYDEN submitted an amendment intended to be proposed by 
him to the bill S. 1383, to establish the Veterans Advisory Committee 
on Equal Access, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. TAX-FREE PRODUCTION OF LOW ALCOHOL BY VOLUME 
                   KOMBUCHA.

       (a) Exemption From Tax on Wine.--Section 5042(a) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following:
       ``(4) Low alcohol by volume kombucha.--
       ``(A) In general.--Subject to regulations prescribed by the 
     Secretary, low alcohol by volume kombucha shall not be 
     subject to--
       ``(i) tax as wine, or
       ``(ii) the provisions of subchapter F.
       ``(B) Definition.--For purposes of this chapter, the term 
     `low alcohol by volume kombucha' means a beverage which--
       ``(i) is fermented solely by a symbiotic culture of 
     bacteria and yeast,
       ``(ii) contains not more than 1.25 percent of alcohol by 
     volume,
       ``(iii) is sold or offered for sale as kombucha, and
       ``(iv) is derived from--

       ``(I) fermentable sugars, including sugar, malt or malt 
     substitute, honey, and fruit juice, and
       ``(II) plant materials, including tea and coffee.''.

       (b) Exemption From Tax on Beer.--Section 5053 of the 
     Internal Revenue Code of 1986 is amended--
       (1) by redesignating subsection (i) as subsection (j), and
       (2) by inserting after subsection (h) the following new 
     subsection:
       ``(i) Production of Low Alcohol by Volume Kombucha.--
     Subject to regulations prescribed by the Secretary, low 
     alcohol by volume kombucha (as defined in section 
     5042(a)(4)(B)) shall not be subject to--
       ``(1) tax as beer, or
       ``(2) the provisions of subchapter G.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to calendar quarters beginning after the date of 
     enactment of this Act.
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