KOMBUCHA

This bill exempts low-alcohol kombucha (under 1.25% alcohol by volume) from federal taxes currently applied to wine and beer. It directly affects kombucha manufacturers who produce beverages meeting the defined criteria: fermented solely by bacteria/yeast, made from ingredients like tea, sugar, or fruit juice, and sold as kombucha. The law removes kombucha from taxable "wine" and "beer" classifications under the Internal Revenue Code, reducing compliance costs for qualifying producers. The exemption applies to products meeting these specific standards, effective after the bill's enactment.