I 
114TH CONGRESS 
1ST SESSION H. R. 2903 
To amend the Internal Revenue Code of 1986 to reform taxation of alcoholic 
beverages. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 25, 2015 
Mr. PAULSEN (for himself, Mr. KIND, Mr. BLUMENAUER, Mr. TIBERI, Mr. 
DEFAZIO, Mr. NEAL, Mr. WOMACK, and Ms. JENKINS of Kansas) intro-
duced the following bill; which was referred to the Committee on Ways 
and Means, and in addition to the Committee on the Budget, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to reform 
taxation of alcoholic beverages. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS; RULE OF 
CONSTRUCTION. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Craft Beverage Modernization and Tax Reform Act of 
2015’’. 
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(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents; rule of construction. 
TITLE I—BONDING AND CAPITALIZATION REQUIREMENTS 
Sec. 101. Removal of bond requirements and extending filing periods for cer-
tain taxpayers with limited excise tax liability. 
Sec. 102. Production period for beer, wine, and distilled spirits. 
TITLE II—BEER 
Sec. 201. Reduced rate of excise tax on beer. 
Sec. 202. Use of wholesome products suitable for human food consumption in 
the production of fermented beverages. 
Sec. 203. Simplification of rules regarding records, statements, and returns. 
Sec. 204. Transfer of beer between bonded facilities. 
TITLE III—HARD CIDER 
Sec. 301. Modification of definition of hard cider. 
TITLE IV—WINE 
Sec. 401. Reduced rate of excise tax on wine produced domestically by certain 
qualifying producers. 
Sec. 402. Adjustment of alcohol content level for application of excise tax rates. 
TITLE V—DISTILLED SPIRITS 
Sec. 501. Reduced rate of excise tax on certain distilled spirits. 
Sec. 502. Exemption of home distillery establishments from certain taxation 
and bonding requirements. 
TITLE VI—PROGRAM INTEGRITY AND EXCISE TAX 
ADMINISTRATION 
Sec. 601. Program Integrity Cap Adjustment for the Alcohol and Tobacco Tax 
and Trade Bureau. 
Sec. 602. Increase information sharing to administer excise taxes. 
(c) RULE OF CONSTRUCTION.—Nothing in this Act, 
the amendments made by this Act, or any regulation pro-
mulgated under this Act or the amendments made by this 
Act, shall be construed to preempt, supersede, or other-
wise limit or restrict any State, local, or tribal law that 
prohibits or regulates the production or sale of distilled 
spirits, wine, or malt beverages. 
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TITLE 
I—BONDING 
AND 
CAP-
ITALIZATION REQUIREMENTS 
SEC. 101. REMOVAL OF BOND REQUIREMENTS AND EX-
TENDING FILING PERIODS FOR CERTAIN 
TAXPAYERS WITH LIMITED EXCISE TAX LI-
ABILITY. 
(a) FILING REQUIREMENTS.—Section 5061(d)(4) of 
the Internal Revenue Code of 1986 is amended— 
(1) in subparagraph (A)— 
(A) by striking ‘‘In the case of’’ and in-
serting the following: 
‘‘(i) MORE
THAN
$1,000
AND
NOT 
MORE THAN $50,000 IN TAXES.—Except as 
provided in clause (ii), in the case of’’, 
(B) by striking ‘‘under bond for deferred 
payment’’, and 
(C) by adding at the end the following new 
clause: 
‘‘(ii) NOT
MORE
THAN
$1,000
IN 
TAXES.—In the case of any taxpayer who 
reasonably expects to be liable for not 
more than $1,000 in taxes imposed with 
respect to distilled spirits, wines, and beer 
under subparts A, C, and D and section 
7652 for the calendar year and who was 
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liable for not more than $1,000 in such 
taxes in the preceding calendar year, the 
last day for the payment of tax on with-
drawals, removals, and entries (and arti-
cles brought into the United States from 
Puerto Rico) shall be the 14th day after 
the last day of the calendar year.’’, and 
(2) in subparagraph (B)— 
(A) by striking ‘‘Subparagraph (A)’’ and 
inserting the following: 
‘‘(i) EXCEEDS
$50,000
LIMIT.—Sub-
paragraph (A)(i)’’, and 
(B) by adding at the end the following new 
clause: 
‘‘(ii) EXCEEDS
$1,000
LIMIT.—Sub-
paragraph (A)(ii) shall not apply to any 
taxpayer for any portion of the calendar 
year following the first date on which the 
aggregate amount of tax due under sub-
parts A, C, and D and section 7652 from 
such taxpayer during such calendar year 
exceeds $1,000, and any tax under such 
subparts which has not been paid on such 
date shall be due on the 14th day after the 
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last day of the calendar quarter in which 
such date occurs.’’. 
(b) BOND REQUIREMENTS.— 
(1) IN GENERAL.—Section 5551 of such Code 
is amended— 
(A) in subsection (a), by striking ‘‘No indi-
vidual’’ and inserting ‘‘Except as provided 
under subsection (d), no individual’’, and 
(B) by adding at the end the following new 
subsection: 
‘‘(d) REMOVAL OF BOND REQUIREMENTS.— 
‘‘(1) IN GENERAL.—During any period to which 
subparagraph (A) of section 5061(d)(4) applies to a 
taxpayer (determined after application of subpara-
graph (B) thereof), such taxpayer shall not be re-
quired to furnish any bond covering operations or 
withdrawals of distilled spirits or wines for non-
industrial use or of beer. 
‘‘(2) 
SATISFACTION
OF
BOND
REQUIRE-
MENTS.—Any taxpayer for any period described in 
paragraph (1) shall be treated as if sufficient bond 
has been furnished for purposes of covering oper-
ations and withdrawals of distilled spirits or wines 
for nonindustrial use or of beer for purposes of any 
requirements relating to bonds under this chapter.’’. 
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(2) CONFORMING AMENDMENTS.— 
(A) 
BONDS
FOR
DISTILLED
SPIRITS 
PLANTS.—Section 5173(a) of such Code is 
amended— 
(i) in paragraph (1), by striking ‘‘No 
person’’ and inserting ‘‘Except as provided 
under section 5551(d), no person’’, and 
(ii) in paragraph (2), by striking ‘‘No 
distilled spirits’’ and inserting ‘‘Except as 
provided under section 5551(d), no dis-
tilled spirits’’. 
(B) BONDED
WINE
CELLARS.—Section 
5351 of such Code is amended— 
(i) by striking ‘‘Any person’’ and in-
serting the following: 
‘‘(a) IN GENERAL.—Any person’’, 
(ii) by inserting ‘‘, except as provided 
under section 5551(d),’’ before ‘‘file bond’’, 
(iii) by striking ‘‘Such premises shall’’ 
and all that follows through the period, 
and 
(iv) by adding at the end the following 
new subsection: 
‘‘(b) DEFINITIONS.—For purposes of this chapter— 
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