Bubble Tax Modernization Act Update – March 2025
The American Cider Association (ACA) is now in its second year of advocacy efforts to pass the Bubble Tax Modernization Act. With a new Congress and a new Administration, we have a fresh opportunity to advance this critical legislation. New Congressional champions are in place, and momentum is building to move the bill forward this year.
What is the Bubble Tax Modernization Act?
Also known as the “Bubble Bill” or “Bubble Tax Bill,” this legislation does not change the excise tax structure for fruited ciders. Cider, perry, wine, and mead containing additional fruit ingredients will continue to be taxed at the existing $1.07 per gallon still wine rate.
However, the Bubble Bill seeks to modify the carbonation threshold that triggers the significantly higher $3.30+ per gallon “Bubble Tax.” Specifically, it proposes raising the allowable carbonation level from 0.39 CO₂/100ml to 0.64 CO₂/100ml, aligning taxation standards across different cider styles. This technical adjustment would provide producers with the flexibility to create a wider range of carbonated ciders without incurring excessive tax burdens.
Want to learn more Bubble Taxes? Download our 2-pager here.
ACA Advocacy Strategy
With new leadership in Congress, the ACA has adapted its advocacy approach to ensure the best chance of success. We have secured bipartisan support in the House of Representatives and are actively working to identify two Senate champions. Our Congressional partners are evaluating the best legislative pathway to advance this bill in 2025.
As we begin this new phase, we are in the “initial education stage”—working to inform key offices about the bill’s importance and build broad support. The coming months will be crucial in shaping the bill’s trajectory, and early feedback from Congressional offices has been encouraging.
Keep the Momentum Going
Engagement from industry stakeholders is vital at this stage. If you have a strong relationship with a Member of Congress or believe your Representative would be an ideal sponsor for the Bubble Bill, we encourage you to get involved. For guidance on outreach and messaging, please contact Jenn Root Martell at jenn@ciderassociation.org.