Wine Excise Tax Modernization Act of 2016

Bill: 114-hr-4934
Sponsor: full_name: Rep. Thompson, Mike [D-CA-5]
Introduced: 2016-04-13
Policy area: Taxation
Subjects: Alcoholic beverages

Food industry and services

Income tax credits

Sales and excise taxes
Latest action: action_date: 2016-04-13
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2016-04-13
action_desc: Introduced in House
text: <p><b>Wine Excise Tax Modernization Act of 2016</b></p> <p> This bill amends the Internal Revenue Code to modify excise taxes and tax credits that apply to wine. </p> <p>The bill expands the small wine producer tax credit to include anyone who produces wine in or imports wine into the United States. It also sets forth: (1) rates for the credit based on the amount of wine which is removed during the year for consumption or sale, and (2) adjustments to the credit for hard cider. </p> <p>The bill increases: (1) the percentage of alcohol by volume limitation for taxation of a still wine, and (2) the carbonation limitation for taxation as still wine. </p> <p>It reduces the excise tax rates on: (1) champagne and other sparkling wines, and (2) artificially carbonated wines. </p>

tv_txt: I 114th CONGRESS 2d Session H. R. 4934 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. Short title This Act may be cited at the Wine Excise Tax Modernization Act of 2016 . 2. Modification of small wine producer credit (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: (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 imposed 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 produced or imported, and (C) 53.5 cents per wine gallon on wine in excess of 130,000 wine gallons and not in excess 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, (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 regulations— 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. 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 percent . (b) Effective date The amendments made by this section shall apply to wine removed during calendar years beginning after December 31, 2016. 4. Increase in carbonation limitation for taxation 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. 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.