Amendments to the Criteria for the Hard Cider Tax Rate and Information on Other Requirements that Apply to Wine that is Eligible for the Hard Cider Tax Rate
May 16, 2017
Number: 2017 - 2
To: Proprietors of Wine Premises, Importers of Wine, and Others Concerned.
1. Purpose.
This circular notifies wine industry members and others concerned about recent changes to the Internal Revenue Code of 1986, as amended (IRC), that affect the tax classification of hard cider for Federal excise tax purposes.
This Industry Circular also provides guidance on the meaning of certain terms and requirements that apply to hard cider.
2. Background.
Section 335 of the Protecting Americans from Tax Hikes (PATH) Act of 2015 (Pub. L. 114-113) amended section 5041(g) of the IRC. As amended, 26 U.S.C. 5041(g) provides that the term "hard cider" means a wine that meets certain criteria.
On January 11, 2017, the Alcohol and Tobacco Tax and Trade Bureau (TTB) published Treasury Decision (TD) TTB-147 in the Federal Register (82 FR 3094) to implement the provisions of the PATH Act relating to hard cider (T.D. TTB-147). T.D. TTB-147 amended the regulations in 27 CFR parts 24 and 27 regarding the definition of hard cider eligible for the hard cider tax rate and added new labeling requirements relating to the hard cider tax class. The amendments in T.D. TTB-147 became effective on January 1, 2017.
3. Questions.
If you have any questions concerning this Industry Circular, please contact the Regulations and Rulings Division at (202) 453-2265 or at TTB Contact Us.
Date Signed: May 16, 2017
Signed by John Manfreda
John J. Manfreda
Administrator
Alcohol and Tobacco Tax and Trade Bureau
Page last reviewed: May 16, 2017
Page last updated: May 16, 2017
Maintained by: Regulations and Rulings Division