I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited at the ‘‘Wine Excise Tax Mod5 ernization Act of 2016’’. 

6 SEC. 2. MODIFICATION OF SMALL WINE PRODUCER CRED7 IT. 

8 (a) IN GENERAL.—Section 5041(c) of the Internal 

9 Revenue Code of 1986 is amended by striking paragraphs 

10 (1) and (2) and inserting the following new paragraphs: 


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1 ‘‘(1) ALLOWANCE OF CREDIT.—In the case of 

2 any person who produces wine in, or imports wine 

3 into, the United States during the calendar year, 

4 there shall be allowed as a credit against any tax im5 posed by this title (other than chapters 2, 21, and 

6 22) of— 

7 ‘‘(A) $1 per wine gallon on the 1st 30,000 

8 wine gallons of wine which are removed during 

9 such year for consumption or sale and which 

10 have been produced in, or imported into, the 

11 United States, 

12 ‘‘(B) 90 cents per wine gallon on wine in 

13 excess of 30,000 wine gallons and not in excess 

14 of 130,000 wine gallons so removed and pro15 duced or imported, and 

16 ‘‘(C) 53.5 cents per wine gallon on wine in 

17 excess of 130,000 wine gallons and not in ex18 cess of 750,000 wine gallons so removed and 

19 produced or imported. 

20 ‘‘(2) ADJUSTMENT OF CREDIT FOR HARD

21 CIDER.—In the case of wine described in subsection 

22 (b)(6), paragraph (1) shall be applied— 

23 ‘‘(A) by substituting ‘6.2 cents’ for ‘$1’ in 

24 subparagraph (A) thereof, 


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1 ‘‘(B) by substituting ‘5.6 cents’ for ‘90 

2 cents’ in subparagraph (B) thereof, 

3 ‘‘(C) by substituting ‘3.3 cents’ for ‘53.5 

4 cents’ in subparagraph (C) thereof, and 

5 ‘‘(D) by taking such wine into account last 

6 in applying such subparagraphs.’’. 

7 (b) CONFORMING AMENDMENT.—Section 5041(c)(7) 

8 of such Code is amended by striking ‘‘, including regula9 tions—’’ and all that follows and inserting a period. 

10 (c) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to wine removed during calendar 

12 years beginning after December 31, 2016. 

13 SEC. 3. ALCOHOL BY VOLUME LIMITATION FOR TABLE 

14 WINE EXCISE TAX RATE INCREASED TO 16 

15 PERCENT. 

16 (a) IN GENERAL.—Paragraphs (1) and (2) of section 

17 5041(b) of the Internal Revenue Code of 1986 are each 

18 amended by striking ‘‘14 percent’’ and inserting ‘‘16 per19 cent’’. 

20 (b) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to wine removed during calendar 

22 years beginning after December 31, 2016. 


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1 SEC. 4. INCREASE IN CARBONATION LIMITATION FOR TAX2 ATION AS STILL WINE. 

3 (a) IN GENERAL.—Section 5041(a) of the Internal 

4 Revenue Code of 1986 is amended by striking ‘‘0.392 

5 gram’’ and inserting ‘‘0.64 gram’’. 

6 (b) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to wine removed during calendar 

8 years beginning after December 31, 2016. 

9 SEC. 5. REDUCED RATE OF EXCISE TAX ON SPARKLING AND 

10 ARTIFICIALLY CARBONATED WINES. 

11 (a) IN GENERAL.—Section 5041(b) of the Internal 

12 Revenue Code of 1986 is amended— 

13 (1) by striking ‘‘$3.40’’ in paragraph (4) and 

14 inserting ‘‘$1.07’’, and 

15 (2) by striking ‘‘$3.30’’ in paragraph (5) and 

16 inserting ‘‘$1.07’’. 

17 (b) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to wine removed during calendar 

19 years beginning after December 31, 2016. 

Æ 


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