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 preven-
tion, treatment, and research of diet-related health conditions in dis-
proportionately 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 Com-
mittee on Ways and Means, and in addition to the Committee on Edu-
cation 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 im-
pacted populations, and for other purposes. 
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 as the ‘‘Sugary Drinks Tax 
Act of 2021’’ or as the ‘‘SWEET Act’’. 
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SEC. 2. FINDINGS AND PURPOSES. 
(a) FINDINGS.—The Congress finds that: 
(1) The prevalence of obesity in the United 
States has increased dramatically over the past 40 
years. From the 1960s to the late 1970s, the preva-
lence was relatively constant, with about 15 percent 
of the population classified as obese. After the 
1970s, these rates began to climb. According to the 
Centers for Disease Control and Prevention, well 
over one-third of adults—42.4 percent (2017–18)— 
and 18.5 percent (2015–2016) of youth in the 
United States were obese. Although no group has es-
caped the epidemic, low-income people and commu-
nities of color are disproportionately affected. Nearly 
half (49.6 percent) of African-American adults were 
obese and 44.8 percent of Hispanic adults were 
obese in 2017–2018. 
(2) The percentage of children who are over-
weight has also increased dramatically in recent dec-
ades. After being relatively constant from the 1960s 
to the 1970s, the prevalence of overweight children 
has more than tripled among children between 6 and 
11 years of age and nearly quadrupled among those 
between 12 and 19 years of age. Despite significant 
public and private investment, childhood obesity 
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rates among young people aged 2–19 remain high 
affecting about 13.7 million children. 
(3) There are significant racial and age dispari-
ties in obesity prevalence among children and adoles-
cents. In 2015–2016, obesity prevalence was higher 
among Hispanics (25.8 percent) and non-Hispanic 
Black youth (22.0 percent) than non-Hispanic White 
youth (14.1 percent). The prevalence of obesity was 
lower in non-Hispanic Asian youth (11.0 percent) 
than in youth who were non-Hispanic White, non- 
Hispanic Black, or Hispanic. 
(4) Overweight and obesity are responsible for 
an estimated $190 billion in health care costs na-
tionally, or approximately five to ten percent of all 
medical spending—with more than 20 percent of 
these costs paid publicly through the Medicare and 
Medicaid programs. The medical costs for people 
with obesity are dramatically higher than those with-
out obesity. 
(5) The obesity epidemic is of particular con-
cern because obesity increases the risk of diabetes, 
heart disease, certain types of cancer, arthritis, asth-
ma, and breathing problems. Depending on their 
level of obesity, from 60 percent to more than 80 
percent of obese adults have type 2 diabetes, high 
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blood cholesterol, high blood pressure, or other re-
lated conditions. According to the CDC, nearly 60 
percent of overweight children have at least one risk 
factor for heart disease. 
(6) Overweight and obesity increase the risk for 
several types of common cancers, including post-
menopausal breast, colorectal, endometrial, kidney, 
pancreatic, esophageal, and gall bladder cancer. Up 
to one in four of all cancer cases and one in three 
cancer deaths are due to poor nutrition, physical in-
activity, and overweight and obesity. 
(7) There is overwhelming evidence of the link 
between the consumption of sugary drinks, such as 
non-diet soft drinks, energy drinks, sweet teas, and 
sports drinks, and obesity and diabetes. Sugary 
drinks are the only food or beverage shown to in-
crease the risk of overweight and obesity. Adults 
who drink one sugary drink or more per day are 27 
percent more likely to be overweight or obese, re-
gardless of income or ethnicity. After six months, 
daily consumption of one liter of sugary drinks in-
creases fat deposits in the liver by 150 percent, 
which directly contributes to both diabetes and heart 
disease. Over 10 years, about two million type 2 dia-
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betes cases in the United States are attributable to 
consumption of sugary drinks. 
(8) According to nutrition experts, sugary 
drinks, such as soft drinks, energy drinks, sweet 
teas, and sport drinks, offer little or no nutritional 
value, but massive quantities of added sugars. A 20- 
ounce bottle of soda contains about 16 teaspoons of 
sugars. Yet, the American Heart Association rec-
ommends that Americans consume no more than six 
to nine teaspoons of sugar per day from all food and 
beverage sources. 
(9) The 2020 Dietary Guidelines states that 
sugary drinks are the top source of added sugars in 
the American diet. For adults, sugary drinks (e.g., 
soda, sports drinks, energy drinks, fruit drinks) and 
sweetened coffees and teas (including ready-to-drink 
varieties) contribute over 40 percent of daily intake 
of added sugars. In childhood, sugary drinks make 
up about 15 to 25 percent of total added sugars in-
take. By adolescence, their contribution is 32 per-
cent and even higher when considering coffee and 
tea beverages with added sugars (an additional 7 
percent). The Dietary Guidelines Advisory Com-
mittee recommended that no more than 6 percent of 
daily calories come from added sugars. 
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(10) Though sugary drink consumption is de-
clining modestly as people learn about their harmful 
health effects, Americans are still consuming twice 
as much of these products as they did in the 1970s. 
Reports show that in recent years sugary drink pur-
chasing has only gone down 6 calories per person 
per day since 2014. Five percent of Americans con-
sume at least 567 kcal from sugar drinks on any 
given day—equal to more than four 12-ounce cans 
of soft drink. On average, children consume more 
than 30 gallons of sugary drinks every year. This is 
enough to fill a bathtub. 
(11) In a study of more than 50,000 female 
nurses, women who increased their sugary drink 
consumption from no more than one per week to at 
least one per day gained an average of 10 pounds 
over four years. Research also shows a significant 
link between sugary drink consumption and weight 
gain in children. In a randomized double-blind con-
trolled trial of roughly 640 children, those who were 
given one 8-ounce serving of a sugary drink a day 
gained more weight and body fat over 11⁄2 years 
than those who got one 8-ounce serving of a sugar- 
free drink. 
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(12) Sugary drinks are a unique contributor to 
excess caloric consumption. A large body of research 
shows that calories from sugary drinks do not sat-
isfy hunger the way calories from solid food or fat 
or protein-containing beverages such as those con-
taining milk and plant-based proteins. As a result, 
sugary drinks tend to add to the calories people con-
sume rather than replace calories from other foods 
and beverages. 
(13) Overweight children have a much greater 
chance of being obese as adults, with all the health 
risks that entails. 
(14) Type 2 diabetes, previously only seen 
among adults, is now increasing among children. 
Data show that almost a quarter of teens now have 
either diabetes or prediabetes. If the current trends 
are not reversed, it is predicted that one in three 
children and nearly one-half of Latino and African- 
American children born in the year 2000 will develop 
type 2 diabetes in their lifetime. 
(15) A 2015 review found that increasing sug-
ary drink consumption by one serving per day in-
creased the risk of heart disease by 17 percent and 
hypertension by 8 percent. In 2012, 50,000 deaths 
were associated with drinking too many sugary 
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drinks. Of that, 40,000 deaths in the U.S. were at-
tributed to heart problems and 10,000 deaths were 
attributed to type 2 diabetes caused specifically by 
consuming too many sugary drinks. 
(16) Tooth decay (dental caries) is the single 
most common chronic childhood disease, experienced 
by more than one-fourth of United States children 
aged 2–5 years and half of those aged 12–15 years. 
About half of all children and two-thirds of adoles-
cents aged 12–19 years from lower-income families 
have had decay. According to the American Academy 
of Pediatric Dentistry, children who frequently or 
excessively consume beverages high in sugar are at 
increased risk for dental caries. Untreated dental 
caries can lead to pain, infection, tooth loss, and in 
severe cases, even death. It can slow normal growth 
and development by restricting nutritional intake. 
Children who are missing teeth may have chewing 
problems that limit their food choices and result in 
nutritionally inadequate diets. 
(17) Local sugary drink taxes that have been 
implemented and evaluated in the United States 
have consistently decreased sales of taxed beverages 
by a range of 10 to 39 percent. They have also 
raised millions of dollars for community priorities. 
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(b) PURPOSES.—It is the intent of the Congress, by 
adopting the Sugary Drinks Tax Act (also known as the 
SWEET Act), to diminish the human and economic costs 
of diabetes, obesity, dental caries, and other diet-related 
health conditions. This Act is intended to discourage ex-
cessive consumption of sugary drinks by increasing the 
price of these products and by creating a dedicated rev-
enue source for programs and research designed to reduce 
the human and economic costs of diabetes, obesity, dental 
caries, and other diet-related health conditions in dis-
proportionately impacted populations. 
SEC. 3. EXCISE TAX ON CERTAIN SUGARY DRINKS. 
(a) IN GENERAL.—Subchapter D of chapter 32 of the 
Internal Revenue Code of 1986 is amended by inserting 
after part I the following new part: 
‘‘PART II—SUGARY DRINKS 
‘‘Sec. 4171. Imposition of tax. 
‘‘Sec. 4172. Definitions. 
‘‘Sec. 4173. Special rules. 
‘‘SEC. 4171. IMPOSITION OF TAX. 
‘‘(a) IN GENERAL.—There is hereby imposed a tax 
on the sale or transfer of any specified sugary drink prod-
uct by the manufacturer, producer, or importer thereof. 
‘‘(b) RATE OF TAX.—The rate of tax imposed under 
subsection (a) in such specified sugary drink products 
shall be calculated using the following tiered system: 
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‘‘(1) For sugary drinks in cans, bottles, plastic 
or other containers: 
‘‘(A) Tier 1: Drinks with fewer than 7.5g 
of sugars per 12 fluid ounces will not be taxed. 
‘‘(B) Tier 2: Drinks with 7.5g to fewer 
than 30g of sugars per 12 fluid ounces will be 
taxed at a rate of $0.02 per ounce. 
‘‘(C) Tier 3: Drinks with more than 30g of 
sugars per 12 fluid ounces will be taxed at a 
rate of $0.03 per ounce. 
‘‘(2) For syrups and powders sold or offered for 
sale to a retailer for sale to a consumer, either as 
syrup or powder or as a sugary drink derived from 
that syrup or powder, are taxable: 
‘‘(A) Syrups and powders shall be taxed 
using the following tiered system: 
‘‘(i) Tier 1: If the drink made from 
the syrup or powder have fewer than 7.5g 
of sugars per 12 fluid ounces, the syrup or 
powder will not be taxed. 
‘‘(ii) Tier 2: If the drink made from 
the syrup or powder have 7.5g to fewer 
than 30g of sugars per 12 fluid ounces, the 
syrup or powder will be taxed at a rate 
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equal to $0.02 per ounce of sugary bev-
erage produced from that syrup or powder. 
‘‘(iii) Tier 3: If the drink made from 
the syrup or powder have more than 30g 
of sugars per 12 fluid ounces, the syrup or 
powder will be taxed at a rate equal to 
$0.03 per ounce of sugary drink produced 
from that syrup or powder. 
‘‘(B) For purposes of calculating the tax, 
the volume of sugary drink produced from syr-
ups or powders shall be the larger of (1) the 
largest volume resulting from use of the syrups 
or powders according to any manufacturer’s in-
structions, or (2) the volume actually produced 
by the retailer, as reasonably determined by the 
Secretary. 
‘‘(3) The Nutrition Facts label, as required by 
the Food and Drug Administration, shall be used to 
determine the amount of sugars per 12 ounces of 
sugary drink by referencing the ‘Serving Size’ and 
‘Total Sugars’ lines on the label. 
‘‘(c) PERSONS LIABLE
FOR TAX.—The manufac-
turer, producer, or importer referred to in subsection (a) 
shall be liable for the tax imposed by such subsection. 
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‘‘(1) It is suggested that the amount of tax im-
posed by this section be passed along to consumers. 
Manufacturers, bottlers, wholesalers, or distributors 
should add the tax amount to the distribution price 
of sugary drinks, and retailers should add the tax 
amount to the retail price of sugary drinks. 
‘‘SEC. 4172. DEFINITIONS. 
‘‘(a) SPECIFIED SUGARY DRINK PRODUCT.—For 
purposes of this part— 
‘‘(1) IN GENERAL.—For purposes of this part, 
the term ‘specified sugary drink product’ means— 
‘‘(A) any liquid intended for human con-
sumption which contains a caloric sweetener, 
and 
‘‘(B) any liquid, or solid mixture of ingre-
dients, which— 
‘‘(i) contains a caloric sweetener, and 
‘‘(ii) is intended for use as an ingre-
dient in a liquid described in subparagraph 
(A). 
‘‘(2) EXCEPTIONS.—The following shall not be 
treated as liquids described in paragraph (1)(A): 
‘‘(A) Any liquid the primary ingredients of 
which are milk or soy, rice, or similar plant- 
based milk substitute. 
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‘‘(B) Any liquid composed entirely of one 
or more of the following: 
‘‘(i) The original liquid resulting from 
the pressing of fruit or vegetables. 
‘‘(ii) The liquid resulting from the re-
constitution of fruit or vegetable juice con-
centrate. 
‘‘(iii) The liquid resulting from the 
restoration of water to dehydrated fruit or 
vegetable juice. 
‘‘(C) Infant formula. 
‘‘(D) Any liquid products manufactured for 
use as— 
‘‘(i) an oral nutritional therapy for 
persons who cannot absorb or metabolize 
dietary nutrients from food or beverages, 
‘‘(ii) a source of necessary nutrition 
used due to a medical condition, or 
‘‘(iii) an oral electrolyte solution for 
infants and children formulated to prevent 
dehydration due to illness. 
‘‘(E) Any liquid with respect to which tax 
is imposed under chapter 51 (relating to dis-
tilled spirits, wines, and beer) or under section 
7652 by reason of the tax imposed under chap-
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ter 51 being imposed on like articles of domes-
tic manufacture. 
‘‘(b) CALORIC SWEETENER.—For purposes of this 
part, the term ‘caloric sweetener’ means monosaccharides, 
disaccharides, and high-fructose corn syrup. 
‘‘SEC. 4173. SPECIAL RULES. 
‘‘(a) SWEETENER TAXED ONLY ONCE.—In the case 
of any specified sugary drink product which is manufac-
tured or produced by including one or more other specified 
sugary beverage products, no tax shall be imposed under 
this section on any caloric sweetener contained in the re-
sulting specified sugary drink product if tax was pre-
viously imposed under this section on such caloric sweet-
ener when contained in the specified sugary drink product 
so included. 
‘‘(b) INFLATION ADJUSTMENT.—The tax amounts 
set forth in this section shall be adjusted annually by the 
Secretary in proportion with the Consumer Price Index: 
All Urban Consumers for All Items for the Statistical Area 
as reported by the United States Bureau of Labor Statis-
tics or any successor to that index. Any increase deter-
mined under this subsection shall be rounded to the near-
est multiple of one-tenth of a cent.’’. 
(b) CONFORMING AMENDMENTS.— 
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(1) Section 4221(a) is amended by adding at 
the end the following: ‘‘Paragraphs (1), (4), (5), and 
(6) shall not apply to the tax imposed under section 
4171.’’. 
(2) The table of parts for subchapter D of 
chapter 32 of such Code is amended by inserting 
after the item relating to part I the following new 
item: 
‘‘PART II. SUGARY DRINKS’’. 
(c) REVENUES
USED
TO
IMPROVE
NUTRITION 
QUALITY OF THE SCHOOL BREAKFAST PROGRAM.— 
(1) TRANSFER
TO
THE
SCHOOL
BREAKFAST 
PROGRAM.—There are hereby appropriated to the 
School Breakfast Program created under section 
4(b) of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1753(b)) (in addition to any 
other amounts appropriated to such Program) 
amounts equivalent to the taxes received in the 
Treasury under part II of subchapter D of chapter 
32. Rules similar to the rules of section 9601 of the 
Internal Revenue Code of 1986 shall apply with re-
spect to the amounts appropriated under this para-
graph. 
(2) PERFORMANCE-BASED USE OF FUNDS.— 
(A) The U.S. Department of Agriculture 
will promulgate proposed regulations no later 
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than six months upon enactment to update the 
meal patterns and nutrition standards for the 
School Breakfast Program established by sec-
tion 4 of the Child Nutrition Act of 1966 (42 
U.S.C. 1773) to be in compliance with the 
quantitative recommendations of the most re-
cent Dietary Guidelines for Americans, includ-
ing, but not exclusive of, a first ever standard 
for added sugars. 
(B) Beginning on the promulgation of the 
implementing regulations described in sub-
section (c)(2)(A), the Secretary shall provide an 
additional 10-cent reimbursement for each 
breakfast served by a school food authority cer-
tified by the State to be in compliance with the 
interim or final regulations described in sub-
section (c)(2)(A). 
(3) FAILURE TO COMPLY.—Beginning on the 
date described in subsection (c)(2)(A), school food 
authorities found to be out of compliance with the 
meal patterns or nutrition standards established by 
the implementing regulations shall not receive the 
additional reimbursement for each breakfast served 
described in this paragraph. 
(d) EFFECTIVE DATE.— 
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(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall take effect on the date of the enactment of this 
Act. 
(2) EXCISE TAX.—The amendments made by 
subsections (a) and (b) shall apply to sales after the 
date of the enactment of this Act. 
Æ 
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