S.Amdt. 4540

SA 4540, submitted by Mr. Wyden, aims to add a section to bill S. 1383 regarding the tax-free production of low alcohol by volume kombucha.

The purpose of this amendment is to change the Internal Revenue Code of 1986 to exempt "low alcohol by volume kombucha" from the following:

• Tax as wine and the provisions of subchapter F.
• Tax as beer and the provisions of subchapter G.

The amendment defines low alcohol by volume kombucha as a beverage that:

• Is fermented solely by a symbiotic culture of bacteria and yeast.
• Contains no more than 1.25 percent of alcohol by volume.
• Is sold or offered for sale as kombucha.
• Is derived from plant materials (including tea and coffee) and fermentable sugars (including sugar, malt or malt substitute, honey, and fruit juice).

These changes would apply to calendar quarters beginning after the date the Act is enacted.