Washington, D.C.—A bill proposed by California congressman and vineyard owner U.S. Rep. Mike Thompson and U.S. Rep. Dave Reichert of Washington state made a step forward May 12 to streamline and reduce excise taxes within the wine industry.

A statement from Thompson`s D.C. office said that H.R. 4934 was referred to the House Committee on Ways and Means for further consideration. `In a Tax Policy Subcommittee hearing earlier today, a number of members voiced support for modernizing alcohol excise taxes. As a senior member of the committee, Rep. Thompson will continue to advocate for his bill until the chairman brings up the legislation for the committee’s consideration,` Megan Rabbitt told Wines & Vines via email.

H.R. 4934 has drawn most attention within the wine industry because it would slash the excise tax on sparkling wines from $3.40 per gallon to $1.70 per gallon, equal to the current tax on still wines. But the bill would also reduce the excise tax by 50 cents per gallon on many still wines with alcohol content higher than 14%.

Since sparkling wine already requires more steps and costs in production, the excise tax has created an extra burden for producers and inhibited many small wineries across the country from adding sparkling wines to their portfolios.

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