KOMBUCHA

HR 6495, titled the KOMBUCHA Act, exempts low-alcohol kombucha (defined as fermented solely by bacteria and yeast, containing ≤1.25% alcohol by volume, sold as kombucha, and made from fermentable sugars and plant materials) from federal taxes currently applied to wine and beer. This directly affects kombucha manufacturers who would no longer pay wine taxes under Section 5042(a) or beer taxes under Section 5053. The bill reclassifies qualifying kombucha as non-taxable under existing tax codes, avoiding both wine and beer tax classifications. The exemption applies to calendar quarters starting after the bill’s enactment.