Keeping Our Manufacturers from Being Unfairly taxed while Championing Health Act or KOMBUCHA
This bill modifies the definition of brewer for purposes of the alcohol excise tax to exempt kombucha from such tax.
To amend the Internal Revenue Code of 1986 to ensure that kombucha is 
   exempt from any excise taxes and regulations imposed on alcoholic 
                               beverages.

    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 ``Keeping Our Manufacturers from Being 
Unfairly taxed while Championing Health Act'' or ``KOMBUCHA''.

SEC. 2. TAX-FREE PRODUCTION OF KOMBUCHA.

    (a) Exception From Definition of Brewer.--Subsection (d) of section 
5052 of the Internal Revenue Code of 1986 is amended to read as 
follows:
    ``(d) Brewer.--
            ``(1) In general.--For purposes of this chapter, the term 
        `brewer' means any person who brews beer or produces beer for 
        sale.
            ``(2) Exception.--The term `brewer' shall not include any 
        person who--
                    ``(A) produces only beer exempt from tax under 
                subsection (e) of section 5053, or
                    ``(B) produces only kombucha exempt from tax under 
                subsection (i) of such section.''.
    (b) Exemption From Tax.--Section 5053 of the Internal Revenue Code 
of 1986 is amended--
            (1) by redesignating subsection (i) as subsection (j), and
            (2) by inserting after subsection (h) the following new 
        subsection:
    ``(i) Production of Kombucha.--
            ``(1) In general.--Subject to regulation prescribed by the 
        Secretary, any person may, without payment of tax, produce 
        kombucha for consumption or sale.
            ``(2) Definition.--For purposes of this chapter, the term 
        `kombucha' means a beverage which--
                    ``(A) is fermented solely by a symbiotic culture of 
                bacteria and yeast,
                    ``(B) contains not more than 1.25 percent of 
                alcohol by volume,
                    ``(C) is sold or offered for sale as kombucha, and
                    ``(D) is derived from--
                            ``(i) sugar, malt or malt substitute, tea, 
                        or coffee, and
                            ``(ii) not more than 20 percent other 
                        wholesome ingredients.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to calendar quarters beginning after the date of enactment of 
this Act.
                                 <all>
KOMBUCHA
To amend the Internal Revenue Code of 1986 to ensure that kombucha is exempt from any excise taxes and regulations imposed on alcoholic beverages.
KOMBUCHA
Keeping Our Manufacturers from Being Unfairly taxed while Championing Health Act
Rep. Blumenauer, Earl