I 

117TH CONGRESS 

1ST SESSION H. R. 2772 

To amend the Internal Revenue Code of 1986 to impose an excise tax 

on sugary drinks, to dedicate the revenues from such tax to the prevention, treatment, and research of diet-related health conditions in disproportionately impacted populations, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 22, 2021 

Ms. DELAURO introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Education and Labor, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to impose 

an excise tax on sugary drinks, to dedicate the revenues 

from such tax to the prevention, treatment, and research 

of diet-related health conditions in disproportionately impacted populations, and for other purposes. 

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 as the ‘‘Sugary Drinks Tax 

5 Act of 2021’’ or as the ‘‘SWEET Act’’. 


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1 SEC. 2. FINDINGS AND PURPOSES. 

2 (a) FINDINGS.—The Congress finds that: 

3 (1) The prevalence of obesity in the United 

4 States has increased dramatically over the past 40 

5 years. From the 1960s to the late 1970s, the preva6 lence was relatively constant, with about 15 percent 

7 of the population classified as obese. After the 

8 1970s, these rates began to climb. According to the 

9 Centers for Disease Control and Prevention, well 

10 over one-third of adults—42.4 percent (2017–18)— 

11 and 18.5 percent (2015–2016) of youth in the 

12 United States were obese. Although no group has es13 caped the epidemic, low-income people and commu14 nities of color are disproportionately affected. Nearly 

15 half (49.6 percent) of African-American adults were 

16 obese and 44.8 percent of Hispanic adults were 

17 obese in 2017–2018. 

18 (2) The percentage of children who are over19 weight has also increased dramatically in recent dec20 ades. After being relatively constant from the 1960s 

21 to the 1970s, the prevalence of overweight children 

22 has more than tripled among children between 6 and 

23 11 years of age and nearly quadrupled among those 

24 between 12 and 19 years of age. Despite significant 

25 public and private investment, childhood obesity 


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1 rates among young people aged 2–19 remain high 

2 affecting about 13.7 million children. 

3 (3) There are significant racial and age dispari4 ties in obesity prevalence among children and adoles5 cents. In 2015–2016, obesity prevalence was higher 

6 among Hispanics (25.8 percent) and non-Hispanic 

7 Black youth (22.0 percent) than non-Hispanic White 

8 youth (14.1 percent). The prevalence of obesity was 

9 lower in non-Hispanic Asian youth (11.0 percent) 

10 than in youth who were non-Hispanic White, non11 Hispanic Black, or Hispanic. 

12 (4) Overweight and obesity are responsible for 

13 an estimated $190 billion in health care costs na14 tionally, or approximately five to ten percent of all 

15 medical spending—with more than 20 percent of 

16 these costs paid publicly through the Medicare and 

17 Medicaid programs. The medical costs for people 

18 with obesity are dramatically higher than those with19 out obesity. 

20 (5) The obesity epidemic is of particular con21 cern because obesity increases the risk of diabetes, 

22 heart disease, certain types of cancer, arthritis, asth23 ma, and breathing problems. Depending on their 

24 level of obesity, from 60 percent to more than 80 

25 percent of obese adults have type 2 diabetes, high 


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1 blood cholesterol, high blood pressure, or other re2 lated conditions. According to the CDC, nearly 60 

3 percent of overweight children have at least one risk 

4 factor for heart disease. 

5 (6) Overweight and obesity increase the risk for 

6 several types of common cancers, including post7 menopausal breast, colorectal, endometrial, kidney, 

8 pancreatic, esophageal, and gall bladder cancer. Up 

9 to one in four of all cancer cases and one in three 

10 cancer deaths are due to poor nutrition, physical in11 activity, and overweight and obesity. 

12 (7) There is overwhelming evidence of the link 

13 between the consumption of sugary drinks, such as 

14 non-diet soft drinks, energy drinks, sweet teas, and 

15 sports drinks, and obesity and diabetes. Sugary 

16 drinks are the only food or beverage shown to in17 crease the risk of overweight and obesity. Adults 

18 who drink one sugary drink or more per day are 27 

19 percent more likely to be overweight or obese, re20 gardless of income or ethnicity. After six months, 

21 daily consumption of one liter of sugary drinks in22 creases fat deposits in the liver by 150 percent, 

23 which directly contributes to both diabetes and heart 

24 disease. Over 10 years, about two million type 2 diaVerDate Sep 11 2014 19:13 Jun 10, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2772.IH H2772

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1 betes cases in the United States are attributable to 

2 consumption of sugary drinks. 

3 (8) According to nutrition experts, sugary 

4 drinks, such as soft drinks, energy drinks, sweet 

5 teas, and sport drinks, offer little or no nutritional 

6 value, but massive quantities of added sugars. A 20- 

7 ounce bottle of soda contains about 16 teaspoons of 

8 sugars. Yet, the American Heart Association rec9 ommends that Americans consume no more than six 

10 to nine teaspoons of sugar per day from all food and 

11 beverage sources. 

12 (9) The 2020 Dietary Guidelines states that 

13 sugary drinks are the top source of added sugars in 

14 the American diet. For adults, sugary drinks (e.g., 

15 soda, sports drinks, energy drinks, fruit drinks) and 

16 sweetened coffees and teas (including ready-to-drink 

17 varieties) contribute over 40 percent of daily intake 

18 of added sugars. In childhood, sugary drinks make 

19 up about 15 to 25 percent of total added sugars in20 take. By adolescence, their contribution is 32 per21 cent and even higher when considering coffee and 

22 tea beverages with added sugars (an additional 7 

23 percent). The Dietary Guidelines Advisory Com24 mittee recommended that no more than 6 percent of 

25 daily calories come from added sugars. 


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1 (10) Though sugary drink consumption is de2 clining modestly as people learn about their harmful 

3 health effects, Americans are still consuming twice 

4 as much of these products as they did in the 1970s. 

5 Reports show that in recent years sugary drink pur6 chasing has only gone down 6 calories per person 

7 per day since 2014. Five percent of Americans con8 sume at least 567 kcal from sugar drinks on any 

9 given day—equal to more than four 12-ounce cans 

10 of soft drink. On average, children consume more 

11 than 30 gallons of sugary drinks every year. This is 

12 enough to fill a bathtub. 

13 (11) In a study of more than 50,000 female 

14 nurses, women who increased their sugary drink 

15 consumption from no more than one per week to at 

16 least one per day gained an average of 10 pounds 

17 over four years. Research also shows a significant 

18 link between sugary drink consumption and weight 

19 gain in children. In a randomized double-blind con20 trolled trial of roughly 640 children, those who were 

21 given one 8-ounce serving of a sugary drink a day 

gained more weight and body fat over 11 22 ⁄2 years 

23 than those who got one 8-ounce serving of a sugar24 free drink. 


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1 (12) Sugary drinks are a unique contributor to 

2 excess caloric consumption. A large body of research 

3 shows that calories from sugary drinks do not sat4 isfy hunger the way calories from solid food or fat 

5 or protein-containing beverages such as those con6 taining milk and plant-based proteins. As a result, 

7 sugary drinks tend to add to the calories people con8 sume rather than replace calories from other foods 

9 and beverages. 

10 (13) Overweight children have a much greater 

11 chance of being obese as adults, with all the health 

12 risks that entails. 

13 (14) Type 2 diabetes, previously only seen 

14 among adults, is now increasing among children. 

15 Data show that almost a quarter of teens now have 

16 either diabetes or prediabetes. If the current trends 

17 are not reversed, it is predicted that one in three 

18 children and nearly one-half of Latino and African19 American children born in the year 2000 will develop 

20 type 2 diabetes in their lifetime. 

21 (15) A 2015 review found that increasing sug22 ary drink consumption by one serving per day in23 creased the risk of heart disease by 17 percent and 

24 hypertension by 8 percent. In 2012, 50,000 deaths 

25 were associated with drinking too many sugary 


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1 drinks. Of that, 40,000 deaths in the U.S. were at2 tributed to heart problems and 10,000 deaths were 

3 attributed to type 2 diabetes caused specifically by 

4 consuming too many sugary drinks. 

5 (16) Tooth decay (dental caries) is the single 

6 most common chronic childhood disease, experienced 

7 by more than one-fourth of United States children 

8 aged 2–5 years and half of those aged 12–15 years. 

9 About half of all children and two-thirds of adoles10 cents aged 12–19 years from lower-income families 

11 have had decay. According to the American Academy 

12 of Pediatric Dentistry, children who frequently or 

13 excessively consume beverages high in sugar are at 

14 increased risk for dental caries. Untreated dental 

15 caries can lead to pain, infection, tooth loss, and in 

16 severe cases, even death. It can slow normal growth 

17 and development by restricting nutritional intake. 

18 Children who are missing teeth may have chewing 

19 problems that limit their food choices and result in 

20 nutritionally inadequate diets. 

21 (17) Local sugary drink taxes that have been 

22 implemented and evaluated in the United States 

23 have consistently decreased sales of taxed beverages 

24 by a range of 10 to 39 percent. They have also 

25 raised millions of dollars for community priorities. 


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1 (b) PURPOSES.—It is the intent of the Congress, by 

2 adopting the Sugary Drinks Tax Act (also known as the 

3 SWEET Act), to diminish the human and economic costs 

4 of diabetes, obesity, dental caries, and other diet-related 

5 health conditions. This Act is intended to discourage ex6 cessive consumption of sugary drinks by increasing the 

7 price of these products and by creating a dedicated rev8 enue source for programs and research designed to reduce 

9 the human and economic costs of diabetes, obesity, dental 

10 caries, and other diet-related health conditions in dis11 proportionately impacted populations. 

12 SEC. 3. EXCISE TAX ON CERTAIN SUGARY DRINKS. 

13 (a) IN GENERAL.—Subchapter D of chapter 32 of the 

14 Internal Revenue Code of 1986 is amended by inserting 

15 after part I the following new part: 

16 ‘‘PART II—SUGARY DRINKS 

‘‘Sec. 4171. Imposition of tax. 

‘‘Sec. 4172. Definitions. 

‘‘Sec. 4173. Special rules. 

17 ‘‘SEC. 4171. IMPOSITION OF TAX. 

18 ‘‘(a) IN GENERAL.—There is hereby imposed a tax 

19 on the sale or transfer of any specified sugary drink prod20 uct by the manufacturer, producer, or importer thereof. 

21 ‘‘(b) RATE OF TAX.—The rate of tax imposed under 

22 subsection (a) in such specified sugary drink products 

23 shall be calculated using the following tiered system: 


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1 ‘‘(1) For sugary drinks in cans, bottles, plastic 

2 or other containers: 

3 ‘‘(A) Tier 1: Drinks with fewer than 7.5g 

4 of sugars per 12 fluid ounces will not be taxed. 

5 ‘‘(B) Tier 2: Drinks with 7.5g to fewer 

6 than 30g of sugars per 12 fluid ounces will be 

7 taxed at a rate of $0.02 per ounce. 

8 ‘‘(C) Tier 3: Drinks with more than 30g of 

9 sugars per 12 fluid ounces will be taxed at a 

10 rate of $0.03 per ounce. 

11 ‘‘(2) For syrups and powders sold or offered for 

12 sale to a retailer for sale to a consumer, either as 

13 syrup or powder or as a sugary drink derived from 

14 that syrup or powder, are taxable: 

15 ‘‘(A) Syrups and powders shall be taxed 

16 using the following tiered system: 

17 ‘‘(i) Tier 1: If the drink made from 

18 the syrup or powder have fewer than 7.5g 

19 of sugars per 12 fluid ounces, the syrup or 

20 powder will not be taxed. 

21 ‘‘(ii) Tier 2: If the drink made from 

22 the syrup or powder have 7.5g to fewer 

23 than 30g of sugars per 12 fluid ounces, the 

24 syrup or powder will be taxed at a rate 


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1 equal to $0.02 per ounce of sugary bev2 erage produced from that syrup or powder. 

3 ‘‘(iii) Tier 3: If the drink made from 

4 the syrup or powder have more than 30g 

5 of sugars per 12 fluid ounces, the syrup or 

6 powder will be taxed at a rate equal to 

7 $0.03 per ounce of sugary drink produced 

8 from that syrup or powder. 

9 ‘‘(B) For purposes of calculating the tax, 

10 the volume of sugary drink produced from syr11 ups or powders shall be the larger of (1) the 

12 largest volume resulting from use of the syrups 

13 or powders according to any manufacturer’s in14 structions, or (2) the volume actually produced 

15 by the retailer, as reasonably determined by the 

16 Secretary. 

17 ‘‘(3) The Nutrition Facts label, as required by 

18 the Food and Drug Administration, shall be used to 

19 determine the amount of sugars per 12 ounces of 

20 sugary drink by referencing the ‘Serving Size’ and 

21 ‘Total Sugars’ lines on the label. 

22 ‘‘(c) PERSONS LIABLE FOR TAX.—The manufac23 turer, producer, or importer referred to in subsection (a) 

24 shall be liable for the tax imposed by such subsection. 


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1 ‘‘(1) It is suggested that the amount of tax im2 posed by this section be passed along to consumers. 

3 Manufacturers, bottlers, wholesalers, or distributors 

4 should add the tax amount to the distribution price 

5 of sugary drinks, and retailers should add the tax 

6 amount to the retail price of sugary drinks. 

7 ‘‘SEC. 4172. DEFINITIONS. 

8 ‘‘(a) SPECIFIED SUGARY DRINK PRODUCT.—For 

9 purposes of this part— 

10 ‘‘(1) IN GENERAL.—For purposes of this part, 

11 the term ‘specified sugary drink product’ means— 

12 ‘‘(A) any liquid intended for human con13 sumption which contains a caloric sweetener, 

14 and 

15 ‘‘(B) any liquid, or solid mixture of ingre16 dients, which— 

17 ‘‘(i) contains a caloric sweetener, and 

18 ‘‘(ii) is intended for use as an ingre19 dient in a liquid described in subparagraph 

20 (A). 

21 ‘‘(2) EXCEPTIONS.—The following shall not be 

22 treated as liquids described in paragraph (1)(A): 

23 ‘‘(A) Any liquid the primary ingredients of 

24 which are milk or soy, rice, or similar plant25 based milk substitute. 


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1 ‘‘(B) Any liquid composed entirely of one 

2 or more of the following: 

3 ‘‘(i) The original liquid resulting from 

4 the pressing of fruit or vegetables. 

5 ‘‘(ii) The liquid resulting from the re6 constitution of fruit or vegetable juice con7 centrate. 

8 ‘‘(iii) The liquid resulting from the 

9 restoration of water to dehydrated fruit or 

10 vegetable juice. 

11 ‘‘(C) Infant formula. 

12 ‘‘(D) Any liquid products manufactured for 

13 use as— 

14 ‘‘(i) an oral nutritional therapy for 

15 persons who cannot absorb or metabolize 

16 dietary nutrients from food or beverages, 

17 ‘‘(ii) a source of necessary nutrition 

18 used due to a medical condition, or 

19 ‘‘(iii) an oral electrolyte solution for 

20 infants and children formulated to prevent 

21 dehydration due to illness. 

22 ‘‘(E) Any liquid with respect to which tax 

23 is imposed under chapter 51 (relating to dis24 tilled spirits, wines, and beer) or under section 

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1 ter 51 being imposed on like articles of domes2 tic manufacture. 

3 ‘‘(b) CALORIC SWEETENER.—For purposes of this 

4 part, the term ‘caloric sweetener’ means monosaccharides, 

5 disaccharides, and high-fructose corn syrup. 

6 ‘‘SEC. 4173. SPECIAL RULES. 

7 ‘‘(a) SWEETENER TAXED ONLY ONCE.—In the case 

8 of any specified sugary drink product which is manufac9 tured or produced by including one or more other specified 

10 sugary beverage products, no tax shall be imposed under 

11 this section on any caloric sweetener contained in the re12 sulting specified sugary drink product if tax was pre13 viously imposed under this section on such caloric sweet14 ener when contained in the specified sugary drink product 

15 so included. 

16 ‘‘(b) INFLATION ADJUSTMENT.—The tax amounts 

17 set forth in this section shall be adjusted annually by the 

18 Secretary in proportion with the Consumer Price Index: 

19 All Urban Consumers for All Items for the Statistical Area 

20 as reported by the United States Bureau of Labor Statis21 tics or any successor to that index. Any increase deter22 mined under this subsection shall be rounded to the near23 est multiple of one-tenth of a cent.’’. 

24 (b) CONFORMING AMENDMENTS.— 


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1 (1) Section 4221(a) is amended by adding at 

2 the end the following: ‘‘Paragraphs (1), (4), (5), and 

3 (6) shall not apply to the tax imposed under section 

4 4171.’’. 

5 (2) The table of parts for subchapter D of 

6 chapter 32 of such Code is amended by inserting 

7 after the item relating to part I the following new 

8 item: 

‘‘PART II. SUGARY DRINKS’’. 

9 (c) REVENUES USED TO IMPROVE NUTRITION

10 QUALITY OF THE SCHOOL BREAKFAST PROGRAM.— 

11 (1) TRANSFER TO THE SCHOOL BREAKFAST

12 PROGRAM.—There are hereby appropriated to the 

13 School Breakfast Program created under section 

14 4(b) of the Richard B. Russell National School 

15 Lunch Act (42 U.S.C. 1753(b)) (in addition to any 

16 other amounts appropriated to such Program) 

17 amounts equivalent to the taxes received in the 

18 Treasury under part II of subchapter D of chapter 

19 32. Rules similar to the rules of section 9601 of the 

20 Internal Revenue Code of 1986 shall apply with re21 spect to the amounts appropriated under this para22 graph. 

23 (2) PERFORMANCE-BASED USE OF FUNDS.— 

24 (A) The U.S. Department of Agriculture 

25 will promulgate proposed regulations no later 


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1 than six months upon enactment to update the 

2 meal patterns and nutrition standards for the 

3 School Breakfast Program established by sec4 tion 4 of the Child Nutrition Act of 1966 (42 

5 U.S.C. 1773) to be in compliance with the 

6 quantitative recommendations of the most re7 cent Dietary Guidelines for Americans, includ8 ing, but not exclusive of, a first ever standard 

9 for added sugars. 

10 (B) Beginning on the promulgation of the 

11 implementing regulations described in sub12 section (c)(2)(A), the Secretary shall provide an 

13 additional 10-cent reimbursement for each 

14 breakfast served by a school food authority cer15 tified by the State to be in compliance with the 

16 interim or final regulations described in sub17 section (c)(2)(A). 

18 (3) FAILURE TO COMPLY.—Beginning on the 

19 date described in subsection (c)(2)(A), school food 

20 authorities found to be out of compliance with the 

21 meal patterns or nutrition standards established by 

22 the implementing regulations shall not receive the 

23 additional reimbursement for each breakfast served 

24 described in this paragraph. 

25 (d) EFFECTIVE DATE.— 


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1 (1) IN GENERAL.—Except as provided in para2 graph (2), the amendments made by this section 

3 shall take effect on the date of the enactment of this 

4 Act. 

5 (2) EXCISE TAX.—The amendments made by 

6 subsections (a) and (b) shall apply to sales after the 

7 date of the enactment of this Act. 

Æ 


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