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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited at the ‘‘Wine Excise Tax Mod-
ernization Act of 2016’’. 
SEC. 2. MODIFICATION OF SMALL WINE PRODUCER CRED-
IT. 
(a) IN GENERAL.—Section 5041(c) of the Internal 
Revenue Code of 1986 is amended by striking paragraphs 
(1) and (2) and inserting the following new paragraphs: 
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‘‘(1) ALLOWANCE OF CREDIT.—In the case of 
any person who produces wine in, or imports wine 
into, the United States during the calendar year, 
there shall be allowed as a credit against any tax im-
posed by this title (other than chapters 2, 21, and 
22) of— 
‘‘(A) $1 per wine gallon on the 1st 30,000 
wine gallons of wine which are removed during 
such year for consumption or sale and which 
have been produced in, or imported into, the 
United States, 
‘‘(B) 90 cents per wine gallon on wine in 
excess of 30,000 wine gallons and not in excess 
of 130,000 wine gallons so removed and pro-
duced or imported, and 
‘‘(C) 53.5 cents per wine gallon on wine in 
excess of 130,000 wine gallons and not in ex-
cess of 750,000 wine gallons so removed and 
produced or imported. 
‘‘(2) ADJUSTMENT
OF
CREDIT
FOR
HARD 
CIDER.—In the case of wine described in subsection 
(b)(6), paragraph (1) shall be applied— 
‘‘(A) by substituting ‘6.2 cents’ for ‘$1’ in 
subparagraph (A) thereof, 
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‘‘(B) by substituting ‘5.6 cents’ for ‘90 
cents’ in subparagraph (B) thereof, 
‘‘(C) by substituting ‘3.3 cents’ for ‘53.5 
cents’ in subparagraph (C) thereof, and 
‘‘(D) by taking such wine into account last 
in applying such subparagraphs.’’. 
(b) CONFORMING AMENDMENT.—Section 5041(c)(7) 
of such Code is amended by striking ‘‘, including regula-
tions—’’ and all that follows and inserting a period. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to wine removed during calendar 
years beginning after December 31, 2016. 
SEC. 3. ALCOHOL BY VOLUME LIMITATION FOR TABLE 
WINE EXCISE TAX RATE INCREASED TO 16 
PERCENT. 
(a) IN GENERAL.—Paragraphs (1) and (2) of section 
5041(b) of the Internal Revenue Code of 1986 are each 
amended by striking ‘‘14 percent’’ and inserting ‘‘16 per-
cent’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to wine removed during calendar 
years beginning after December 31, 2016. 
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SEC. 4. INCREASE IN CARBONATION LIMITATION FOR TAX-
ATION AS STILL WINE. 
(a) IN GENERAL.—Section 5041(a) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘0.392 
gram’’ and inserting ‘‘0.64 gram’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to wine removed during calendar 
years beginning after December 31, 2016. 
SEC. 5. REDUCED RATE OF EXCISE TAX ON SPARKLING AND 
ARTIFICIALLY CARBONATED WINES. 
(a) IN GENERAL.—Section 5041(b) of the Internal 
Revenue Code of 1986 is amended— 
(1) by striking ‘‘$3.40’’ in paragraph (4) and 
inserting ‘‘$1.07’’, and 
(2) by striking ‘‘$3.30’’ in paragraph (5) and 
inserting ‘‘$1.07’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to wine removed during calendar 
years beginning after December 31, 2016. 
Æ 
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