KOMBUCHA

This Act may be cited as the Keeping Our Manufacturers from Being Unfairly taxed while Championing Health Act or KOMBUCHA.
Section 5042(a) of the Internal Revenue Code of 1986 is amended by adding at the end the following:
Subject to regulations prescribed by the Secretary, low alcohol by volume kombucha shall not be subject to—
tax as wine, or
the provisions of subchapter F.
For purposes of this chapter, the term low alcohol by volume kombucha means a beverage which—
is fermented solely by a symbiotic culture of bacteria and yeast,
contains not more than 1.25 percent of alcohol by volume,
is sold or offered for sale as kombucha, and
is derived from—
fermentable sugars, including sugar, malt or malt substitute, honey, and fruit juice, and
plant materials, including tea and coffee.
Section 5053 of the Internal Revenue Code of 1986 is amended—
by redesignating subsection (i) as subsection (j), and
by inserting after subsection (h) the following new subsection:
Subject to regulations prescribed by the Secretary, low alcohol by volume kombucha (as defined in section 5042(a)(4)(B)) shall not be subject to—
tax as beer, or
the provisions of subchapter G.
The amendments made by this section shall apply to calendar quarters beginning after the date of enactment of this Act.