KOMBUCHA

This bill, titled KOMBUCHA, removes federal excise taxes on kombucha beverages that contain 1.25 percent alcohol or less. By amending the Internal Revenue Code, it ensures these drinks are no longer taxed as wine or beer, provided they are fermented using specific bacteria and yeast cultures and made from ingredients like tea, coffee, and sugar. The changes apply to producers and sellers of qualifying kombucha starting with the calendar quarter after the law is enacted.