Mead Equality And Definition Act of 2016 or the MEAD Act
This bill amends the Internal Revenue Code to modify rules regarding the taxation of mead (honey wine) and other agricultural wines.
The bill repeals the limitations on adding wine spirits to an agricultural wine or using any coloring material, herbs, or other flavoring material (except hops in the case of honey wine) in the production.
The Department of the Treasury must modify regulations for the production of agricultural wine to allow: (1) the use of spirits in the production of agricultural wine; and (2) additional ingredients to be added during the production of mead, including limited amounts of fruits, vegetables, spices, and other ingredients that are suitable for human food consumption and safe for use in an alcoholic beverage.
In modifying the regulations, Treasury must also:
The bill also: (1) specifies a tax rate of 22.6 cents per gallon for mead containing not more than 0.64 grams of carbon dioxide per hundred milliliters of mead, and (2) allows a credit against such tax on meads for small domestic producers.
[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6000 Introduced in House (IH)]
<DOC>
114th CONGRESS
2d Session
H. R. 6000
To amend the Internal Revenue Code of 1986 to modify rules relating to
the taxation of mead and other agricultural wine, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 13, 2016
Mr. Sanford introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to modify rules relating to
the taxation of mead and other agricultural wine, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Mead Equality And Definition Act of
2016'' or the ``MEAD Act''.
SEC. 2. REPEAL OF LIMITATIONS RELATING TO USE OF SPIRITS, FRUITS,
HERBS, ETC.
(a) In General.--Section 5387 of the Internal Revenue Code of 1986
is amended by striking subsection (b) and by redesignating subsection
(c) as subsection (b).
(b) Regulations.--Not later than 1 year after the date of the
enactment of this Act, the Secretary of the Treasury shall modify
subpart I of part 24 of subchapter A of chapter 1 of title 27, Code of
Federal Regulations as follows:
(1) Allow the use of spirits in the production of
agricultural wine in a manner similar to the use of spirits in
the production of natural wine.
(2) Eliminate any limitation on the quantity of hops used
in the production of mead.
(3) Allow, in the production of mead, the addition of
wholesome fruits (including fruit juices, fruit puree, fruit
extract, or fruit concentrate), vegetables, spices, and other
ingredients suitable for human food consumption that are
generally recognized as safe for use in an alcoholic beverage,
but only to the extent the addition thereof contributes to less
than 50 percent of the total Brix of the mead.
(4) Allow, in the production mead, the density of the honey
and water mixture to be below 13 degrees Brix in the case of an
addition described in paragraph (3), but only to the extent the
resulting mixture is not less than 13 degrees Brix.
(5) Provide that after complete fermentation mead may not
have an alcohol content of more than 24 percent by volume.
(c) Rule of Construction.--Nothing in this section shall be
construed to revoke, prescribe, or limit any other exemptions from the
requirements under subpart I of part 24 of subchapter A of chapter I of
title 27, Code of Federal Regulations, for any ingredient that has been
recognized before, on, or after the date of the enactment of this Act
as a traditional ingredient in the production of fermented beverages.
(d) Effective Date.--The amendments made by subsection (a) shall
take effect on the date that is 1 year after the date of the enactment
of the this Act.
SEC. 3. MODIFICATION OF FORMULA REQUIREMENT FOR AGRICULTURAL WINE.
Not later than 1 year after the date of the enactment of this Act,
the Secretary of the Treasury shall modify subpart I of part 24 of
subchapter A of chapter 1 of title 27, Code of Federal Regulations to
allow, for research and development purposes (including consumer taste
testing), production of agricultural wine without an approved formula,
but only to the extent such wine is not marketed or sold prior to
approval of its formula.
SEC. 4. RATE OF TAXATION FOR MEAD.
(a) In General.--Section 5041(b) of the Internal Revenue Code of
1986 is amended by striking ``and'' at the end of paragraph (5), by
striking the period at the end of paragraph (6) and inserting ``;
and'', and by adding at the end the following new paragraph:
``(7) On meads containing not more than 0.64 grams of
carbon dioxide per hundred millimeters of mead, at 22.6 cents
per gallon (except that the Secretary may by regulations
prescribe such tolerances to this limitation as may be
reasonably necessary in good commercial practice).''.
(b) Credit for Small Producers.--Section 5041(c) of such Code is
amended by inserting ``or (b)(7)'' after ``(b)(6)''.
(c) Effective Date.--The amendments made by this section shall
apply to mead removed during calendar years beginning after December
31, 2016.
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Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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