The Bubble Tax Modernization Act of 2024 changes how the federal government taxes mead and low alcohol by volume wine. Currently, these two products are taxed differently under the Internal Revenue Code, but this bill removes that distinction by establishing a single tax classification for low alcohol by volume wine, defined as wine containing no more than 16 percent alcohol by volume and no more than 0.64 grams of carbon dioxide per hundred milliliters. The legislation specifically affects mead producers and wineries that make low alcohol wines, potentially simplifying their tax obligations and reducing compliance costs. The changes take effect on January 1, 2025, and apply to all wine removed from production after that date.
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