A bipartisan bill introduced Tuesday in the U.S. House of Representatives could reshape how sparkling cider, wine, and mead made with fruit are taxed—potentially opening the door for craft producers to expand their offerings without facing steep financial penalties.
Rep. Andrea Salinas, a Democrat from Oregon’s 6th District, introduced the Bubble Tax Modernization Act, aiming to address what she calls outdated and restrictive provisions in the federal tax code that penalize carbonation in beverages made with fruits beyond apples and pears. The proposed legislation, designated H.R. 4613, seeks to eliminate the so-called “bubble tax” that has long been a barrier to innovation and growth within the cider industry.
“Oregon has some of the highest quality fruit in the country, but red tape in our tax code makes it nearly impossible to use these products to make the fruited wines, ciders, and meads that people want,” Salinas said. “My bill levels the playing field for the cider industry and makes it more affordable to produce the sparkling, fruited drinks consumers want.”
Under current law, beverages like cider that are made with fruits other than apples and pears face a sharp tax increase if they exceed a carbonation threshold of 0.39 grams of carbon dioxide per 100 milliliters. Many cider makers argue this results in beverages that taste flat and fall short of consumer expectations. Salinas’ bill would raise that allowable carbonation level to 0.64 g/100ml—the same standard permitted for other categories like wine and mead—without triggering a higher excise tax.
Rep. Derrick Van Orden, a Republican from Wisconsin and co-lead sponsor of the bill, said the legislation would remove an arbitrary constraint that limits craft beverage makers’ ability to innovate.
“Cidermakers should not be limited to just pears and apples in order to avoid a massive, unnecessary tax hike on their products,” Van Orden said. “This bill works for everyone—farmers, cidermakers, and consumers—by allowing any type of fruit to be added to cider and taxed at the standard rate.”
Industry groups say the financial stakes are significant. The American Cider Association estimates that exceeding the carbonation threshold can increase taxes by as much as $3.40 per gallon, a cost many small producers cannot absorb.
“The Bubble Tax Modernization Act is a critical, overdue fix that will finally bring fairness to how cider is taxed in the U.S.,” said Monica Cohen, CEO of the American Cider Association. “It eliminates outdated penalties on carbonated, fruit-forward ciders and gives small cidermakers the freedom to innovate without being punished.”
Support for the legislation is coming from across the country, especially from regions where cider is a growing agricultural and economic force. Emily Ritchie, executive director of the Northwest Cider Association, said the tax structure has unfairly restricted producers in the Pacific Northwest—home to some of the nation’s most diverse orchard landscapes.
“This is a common-sense update that will allow our producers to grow, hire more local workers, and invest back into our rural communities and vibrant apple and pear orchards,” Ritchie said.
In New York, a state with a rapidly growing cider economy, Scott Ramsey of the New York Cider Association echoed those sentiments, calling the legislation a “long-overdue step toward fairness.”
“By leveling the playing field, this bill will empower our producers to expand their offerings, hire more local workers, and reinvest in the rural communities and orchards that fuel our economy,” Ramsey said.
The bill has also gained endorsements from the Northwest Cider Association, North Carolina Cider Association, New York Cider Association, and the Pennsylvania Cider Guild. Advocates are now turning their attention to the US Senate, where they hope to see companion legislation introduced before the end of the fiscal year.
For now, industry leaders are urging cidermakers and supporters to contact their congressional representatives in support of the bill, positioning the effort as essential to preserving competitiveness in a sector that blends agriculture, manufacturing, and hospitality.
“This legislation isn’t about loopholes or handouts,” Cohen said. “It’s about catching up with how the modern cider industry works—and giving small businesses the room to succeed.”
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