Urge Congress to Support the Bubble Bill

Earlier this year Representatives Earl Blumenauer (OR-D) & Mike Kelly (PA-R) introduced the Bubble Tax Modernization Act of 2024 (HR 7029) to the 118th Congress. The “Bubble Bill” will amend a minor carbonation tax disparity for lower alcohol wine, cider and mead made with fruit. Read the complete bill here.

Despite the popularity of bubbly beverages, the carbonation tax–colloquially called the ‘bubble tax’ on fruit wine, fruit cider, and fruit mead makes carbonating these agricultural products at sparkling levels cost prohibitive. Most craft beverage entrepreneurs can’t afford to carbonate these products at the level the market wants. The result is that an important American agricultural sector is falling flat.

Current tax rates for low-ABV carbonated fruit wine, cider, and mead are $3.30 or $3.40 per gallon. Meanwhile low-ABV carbonated grape wines have a current tax rate of $1.07 per gallon. In addition, fruited beers, seltzers, hard kombucha, and ready-to-drink canned cocktails are carbonating freely to give consumers the bubbles they want.

Raising the floor of the carbonation tax threshold to include ALL low-ABV wine, cider, and mead to 0.64 grams of carbon dioxide per hundred milliliters will allow producers to compete more fairly in the evolving beverage market. The Craft Beverage Modernization and Tax Reform Act of 2020 achieved this for grape-only wines, but fruit-based craft beverages were overlooked. This created an excise tax disparity of $2.00 to $3.00 a gallon depending on the product. For more information download the Understanding Bubble Taxes explanatory document.

Allowing more carbonation will foster more economic opportunities for craft beverage makers, allow for more small producer collaborations, create increased opportunities for farms to stay viable with value-added products, and allow for diversification that could help farms and businesses mitigate disasters such as fires, droughts, floods, or crop disease.

Please ask your Congressional representatives to sign onto the Bubble Bill today to support American craft beverage producers and manufacturers.