This bill is currently in the early stages of the legislative process after being sent to the Senate Committee on Finance for review. It is considered active, but no further meetings or votes have been scheduled at this time.
Legislative Progress
Senate
House
President
Law
Could go either way
The bill has a powerful sponsor in the Senate Finance Committee chair, but it is a specific industry fix that might not be a top priority for the full Congress.
Key Points
This bill would stop the federal government from taxing kombucha as an alcoholic drink if it contains less than 1.25 percent alcohol. Right now, drinks are often taxed like beer or wine if they go over a 0.5 percent alcohol limit.
Kombucha makers would no longer have to follow strict rules meant for breweries and wineries. This means less paperwork and fewer regulations for small businesses that make these fermented tea drinks.
The change helps local drink makers by lowering their costs and making it easier to get their products on store shelves. It treats the small amount of alcohol in kombucha as a natural part of the brewing process rather than a liquor product.
To qualify for this tax break, the drink must be made from tea, coffee, or other plants and fermented with specific bacteria and yeast. It must also be clearly labeled and sold as kombucha.
Impact Analysis
Govbase has not yet run an impact analysis on this legislation.
Milestones
2 milestones2 actions
Apr 30, 2026Senate
Read twice and referred to the Committee on Finance.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Apr 30, 2026
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
