Bubble Tax Modernization Act of 2025

This bill modifies the tax treatment of certain alcoholic beverages by merging the classification for mead and low-alcohol wine under a single tax category. It defines "low alcohol by volume wine" as still wine containing less than 8.5% alcohol by volume and no more than 0.64 grams of carbon dioxide per 100 milliliters. This change directly affects winemakers and honey-based beverage producers who previously faced different tax rules for these products. The updated definition takes effect for wine produced after December 31, 2025.