Bubble Tax Modernization Act of 2024

HR 7029, the Bubble Tax Modernization Act of 2024, simplifies tax rules for certain alcoholic beverages by removing a separate tax classification for mead (honey wine). It defines "low alcohol by volume wine" to include all still wines (non-sparkling) with less than 8.5% alcohol and under 0.64g carbon dioxide per 100ml, treating them the same as mead for tax purposes. This change directly affects winemakers and beverage producers who previously faced different tax treatments for mead versus low-alcohol wine. The bill takes effect for wine produced after December 31, 2024.