Introduction of the Cider Industry Deserves Equal Regulation or "CIDER" Act

Floor Speech

Mr. BLUMENAUER. Mr. Speaker, today I am introducing bipartisan legislation--the ``Cider Industry Deserves Equal Regulation,'' or ``CIDER,'' Act--to update the provisions of the tax code that relate to the cider industry.

Across the country, cidermakers large and small are developing their craft, establishing businesses and brands, and providing new markets for our nation's apple and pear orchards. As they pursue this work; they do so in an uncertain tax and regulatory environment, one where slight variations in the fermenting process can cause them to run afoul of narrow tax and alcohol regulatory rules. Congress, by enacting this legislation, would support this growing industry and ensure that it is treated fairly by regulatory agencies.

During the fermentation process a variety of factors can lead to small changes in the composition of a cider's alcohol content and carbonation. Because of the narrow way that hard cider is currently defined in the tax code, these small variations can lead to cider being taxed at a rate fifteen times higher than what the statute clearly intended. This legislation would broaden this definition to include pear as well as apple cider and would greatly reduce the chance that improper taxation would occur. The legislation also aligns the US cider definitions more closely with global definitions for these products, and helps ensure that American-made cider is competitive on international markets.

I look forward to working with my colleagues to support the American cider industry.

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