This bill would exempt low-alcohol kombucha from federal excise taxes and alcohol beverage regulations. Specifically, kombucha products containing no more than 1.25 percent alcohol by volume would be freed from both wine and beer taxes under the Internal Revenue Code, as well as the regulatory requirements that typically apply to alcoholic beverages. The legislation defines qualifying kombucha as beverages fermented by bacteria and yeast cultures, made from fermentable sugars and plant materials like tea or coffee, and marketed as kombucha. The exemption would take effect for calendar quarters beginning after the bill becomes law. The measure was introduced by Representatives Salinas and Smith of Nebraska and referred to the House Ways and Means Committee in April 2026.
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