TTB Publishes Industry Circular Explaining Changes to Criteria for Hard Cider Tax Rate
The Internal Revenue Code criteria for the "hard cider" tax rate have changed for wines removed from wine premises or customs custody on or after January 1, 2017. The hard cider tax rate is lower than the tax rate for other wines. The modified criteria broaden the range of wines eligible for the hard cider tax rate as follows:
- The allowable alcohol content increases from less than 7 percent to less than (not equal to) 8.5 percent alcohol by volume;
- The allowable carbonation level increases from 0.392 to 0.64 grams of carbon dioxide per hundred milliliters of wine; and
- The use of pears and pear juice concentrate is authorized in wine eligible for the hard cider tax rate.
Wine eligible for the hard cider tax rate cannot contain fruit products or fruit flavors other than apple and pear.