US Cider Makers Urge Congress to Pass Legislatio​n to Grow Industry

The Blumenauer-Collins bill would amend the section of the Internal Revenue Code (26 USC Section 5041) to allow cider makers to produce hard cider using the natural products available without the possibility of facing increased tax liability.  Specifically, the legislation would (1) increase the carbonation level for hard cider, thereby meeting customer expectations, (2) include pears in the definition of "hard cider," and (3) align the alcohol-content standard for hard cider with the natural sugar content of apples. 

Under current federal law, for example, the outdated definition of hard cider allows for up to 7 percent alcohol by volume before it is taxed as a wine, and only a certain level of carbonation before it is subject to the champagne tax.  The legislative changes made by H.R. 2921 would ensure that ciders are taxed consistently. 

"This legislation really is about updating the tax law to reflect the realities in today’s cider marketplace," said Mike Beck.  "We are going to work hard with Reps. Blumenauer and Collins to educate other Members about this legislation and our industry’s needs so that we can increase our competitiveness, grow our industry and create more jobs.  We are hopeful that a Senate companion bill will be introduced soon, and that this legislative change will be made part of any tax legislation that is considered by the Congress."
.