115 S236 IS: Craft Beverage Modernization and Tax Reform Act of 2017
U.S. Senate
2017-01-30
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of contents; rule of construction
(a)
This Act may be cited as the Craft Beverage Modernization and Tax Reform Act of 2017
.
(b)The table of contents of this Act is as follows:Sec. 1. Short title; table of contents; rule of construction. TITLE I—Production period Sec. 101. Production period for beer, wine, and distilled spirits. TITLE II—Beer Sec. 201. Reduced rate of excise tax on beer. Sec. 202. Use of wholesome products suitable for human food consumption in the production of fermented beverages. Sec. 203. Simplification of rules regarding records, statements, and returns. Sec. 204. Transfer of beer between bonded facilities. TITLE III—Wine Sec. 301. Reduced rate of excise tax on certain wine. Sec. 302. Adjustment of alcohol content level for application of excise tax rates. Sec. 303. Definition of mead and low alcohol by volume wine. TITLE IV—Distilled Spirits Sec. 401. Reduced rate of excise tax on certain distilled spirits. Sec. 402. Bulk distilled spirits. TITLE V—Funding Sec. 501. Increased funding for the Alcohol and Tobacco Tax and Trade Bureau. (c)Nothing in this Act, the amendments made by this Act, or any regulation promulgated under this Act or the amendments made by this Act, shall be construed to preempt, supersede, or otherwise limit or restrict any State, local, or tribal law that prohibits or regulates the production or sale of distilled spirits, wine, or malt beverages.
<enum>I</enum><header>Production period</header>
<section id="id8D9833A0826147C1BB0AB853DC7ED7B8"><enum>101.</enum><header>Production period for beer, wine, and distilled spirits</header>
<subsection id="id3E837D9F9EDD4C44992164CCF4A11B82"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/263A">Section 263A(f)</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <paragraph id="idBFFEC71F22CD4E4395108DA0D11BAFCE"><enum>(1)</enum><text>by redesignating paragraph (4) as paragraph (5), and</text>
</paragraph><paragraph id="idCC3723BB260243FDA5CC3617C2EA16A8"><enum>(2)</enum><text>by inserting after paragraph (3) the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="idE42039EF0EAC4577846B13E8AAB2F829" style="OLC"> <paragraph id="idAA2FF704FE664F2193391ABFF80A0830"><enum>(4)</enum><header>Exemption for aging process of beer, wine, and distilled spirits</header><text>For purposes of this subsection, the production period shall not include the aging period for—</text>
<subparagraph id="id423AFF211E8B47FF816564C443DC6EA4"><enum>(A)</enum><text>beer (as defined in section 5052(a)),</text> </subparagraph><subparagraph id="idA4F50161B9EE46BBAB2151F8D9DF52A3"><enum>(B)</enum><text>wine (as described in section 5041(a)), or</text>
</subparagraph><subparagraph id="id72E39229C19A4472B837BC1ACF32FC75"><enum>(C)</enum><text>distilled spirits (as defined in section 5002(a)(8)), except such spirits that are unfit for use for beverage purposes.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idA983F49D365047A49B63EE9585B0E342"><enum>(b)</enum><header>Conforming amendment</header><text>Paragraph (5)(B)(ii) of <external-xref legal-doc="usc" parsable-cite="usc/26/263A">section 263A(f)</external-xref> of the Internal Revenue Code of 1986, as redesignated by this section, is amended by inserting <quote>except as provided in paragraph (4),</quote> before <quote>ending on the date</quote>.</text>
</subsection><subsection id="idF3C29439660C4FCA9D7B2D185F7E2906"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to interest costs paid or incurred in taxable years ending on or after December 31, 2018.</text>
</subsection></section><enum>II</enum><header>Beer</header>
<section commented="no" id="HF31E310D105C4401A3EAF3E75E2BB340" section-type="subsequent-section"><enum>201.</enum><header>Reduced rate of excise
tax on beer</header>
<subsection commented="no" id="H5E13E6530BAA4C43BF82F7D6AA074D0B"><enum>(a)</enum><header>In general</header><text>Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/5051">section 5051(a)</external-xref> of the Internal Revenue Code of 1986 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id561B041A0A4B438AA4E6C5D3A3E88773" style="OLC">
<paragraph commented="no" id="idDDC45437ED194EAC9B098BD7E8C127FF"><enum>(1)</enum><header>In general</header>
<subparagraph commented="no" id="id866C991E8D5E43A290A07F6685E37DB3"><enum>(A)</enum><header>Imposition of tax</header><text>A tax is hereby imposed on all beer brewed or produced, and removed for consumption or sale, within the United States, or imported into the United States. Except as provided in paragraph (2), the rate of such tax shall be—</text>
<clause commented="no" id="id6C71096081D946E8B8CB36A0A61C643F"><enum>(i)</enum><text>$16 on the first 6,000,000 barrels of beer—</text> <subclause commented="no" id="id0A724530A6E040098CD0FED5D84B1DDB"><enum>(I)</enum><text>brewed by the brewer and removed during the calendar year for consumption or sale, or</text>
</subclause><subclause commented="no" id="id05AA58D901AE44FB97967F524BB1E90E"><enum>(II)</enum><text>imported by the importer into the United States during the calendar year, and</text> </subclause></clause><clause commented="no" id="id1D3204C36D434BFB956E687D9A38492A"><enum>(ii)</enum><text>$18 on any barrels of beer to which clause (i) does not apply.</text>
</clause></subparagraph><subparagraph commented="no" id="id3060E7D8C03F4677AE69EF27AB48BC9D"><enum>(B)</enum><header>Barrel</header><text>For purposes of this section, a barrel shall contain not more than 31 gallons of beer, and any tax imposed under this section shall be applied at a like rate for any other quantity or for fractional parts of a barrel.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="id85A5544FEB114F0DA44C019828575499"><enum>(b)</enum><header>Reduced rate for certain domestic production</header><text>Subparagraph (A) of <external-xref legal-doc="usc" parsable-cite="usc/26/5051">section 5051(a)(2)</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <paragraph commented="no" id="id978A666B356349C5B0874E1198ADF69E"><enum>(1)</enum><text>in the heading, by striking <quote><header-in-text level="subparagraph" style="tax">$7</header-in-text></quote> and inserting <quote><header-in-text level="subparagraph" style="tax">$3.50</header-in-text></quote>, and</text>
</paragraph><paragraph commented="no" id="id193C0EFFB8214280AEF465F57FA267C3"><enum>(2)</enum><text>by striking <quote>$7</quote> and inserting <quote>$3.50</quote>.</text> </paragraph></subsection><subsection commented="no" id="id7B9F39B238FD4A0C88A55F1B955BC863"><enum>(c)</enum><header>Application of reduced tax rate for foreign manufacturers and importers</header><text>Subsection (a) of <external-xref legal-doc="usc" parsable-cite="usc/26/5051">section 5051</external-xref> of the Internal Revenue Code of 1986 is amended—</text>
<paragraph commented="no" id="idB39784F08BCD459E983339D5EBF02014"><enum>(1)</enum><text>in subparagraph (A)(i)(II) of paragraph (1), as amended by subsection (a) of this section, by inserting <quote>but only if the importer is an electing importer under paragraph (4) and the barrels have been assigned to the importer pursuant to such paragraph</quote> after <quote>during the calendar year</quote>, and</text>
</paragraph><paragraph commented="no" id="id6695482F57964920A14422245968048D"><enum>(2)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="idB5EFDBA197774BA480F5F01C5B498CDC" style="OLC"> <paragraph commented="no" id="idCD1D55F1392A458883ECBDBCC147B011"><enum>(4)</enum><header>Reduced tax rate for foreign manufacturers and importers</header> <subparagraph commented="no" id="id9E776F997E06411E95EBB3FD3E0D63E5"><enum>(A)</enum><header>In general</header><text>In the case of any barrels of beer which have been brewed or produced outside of the United States and imported into the United States, the rate of tax applicable under clause (i) of paragraph (1)(A) (referred to in this paragraph as the <term>reduced tax rate</term>) may be assigned by the brewer (provided that the brewer makes an election described in subparagraph (B)(ii)) to any electing importer of such barrels pursuant to the requirements established by the Secretary of the Treasury under subparagraph (B).</text>
</subparagraph><subparagraph commented="no" id="idF9C80529CEE3433B83A01823B746BDB3"><enum>(B)</enum><header>Assignment</header><text>The Secretary of the Treasury, in consultation with the Secretary of Health and Human Services and the Secretary of the Department of Homeland Security, shall, through such rules, regulations, and procedures as are determined appropriate, establish procedures for assignment of the reduced tax rate provided under this paragraph, which shall include—</text>
<clause commented="no" id="id0351E683CAD64EFDB4293150BB5FFE89"><enum>(i)</enum><text>a limitation to ensure that the number of barrels of beer for which the reduced tax rate has been assigned by a brewer—</text>
<subclause commented="no" id="id9F31707DC7C94B059384803E5DE78C63"><enum>(I)</enum><text>to any importer does not exceed the number of barrels of beer brewed or produced by such brewer during the calendar year which were imported into the United States by such importer, and</text>
</subclause><subclause commented="no" id="id13C797B5C6E24D6D9531F9B4EDB3D87F"><enum>(II)</enum><text>to all importers does not exceed the 6,000,000 barrels to which the reduced tax rate applies,</text> </subclause></clause><clause commented="no" id="idAE3F717054754FB8A050FA9CDB9E9F67"><enum>(ii)</enum><text>procedures that allow the election of a brewer to assign and an importer to receive the reduced tax rate provided under this paragraph,</text>
</clause><clause commented="no" id="id24B4152EAA63463A81FDE87EEB36011D"><enum>(iii)</enum><text>requirements that the brewer provide any information as the Secretary determines necessary and appropriate for purposes of carrying out this paragraph, and</text>
</clause><clause commented="no" id="idF46F4BBB5FF44EE8BB5E745894A26413"><enum>(iv)</enum><text>procedures that allow for revocation of eligibility of the brewer and the importer for the reduced tax rate provided under this paragraph in the case of any erroneous or fraudulent information provided under clause (iii) which the Secretary deems to be material to qualifying for such reduced rate.</text>
</clause></subparagraph><subparagraph commented="no" id="id42449B9E13C34AC5815E43CA4EA95622"><enum>(C)</enum><header>Controlled group</header>
<text>For purposes of this section, any importer making an election described in subparagraph (B)(ii) shall be deemed to be a member of the controlled group of the brewer, as described under paragraph (5).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="HBA38B932D3DF42D2B8295ACCF2FE61F3"><enum>(d)</enum><header>Controlled group and single taxpayer rules</header><text>Subsection (a) of <external-xref legal-doc="usc" parsable-cite="usc/26/5051">section 5051</external-xref> of the Internal Revenue Code of 1986, as amended by this section, is amended—</text>
<paragraph commented="no" id="id5F94C19973CB477DB353D6BF0BE0BD59"><enum>(1)</enum><text>in paragraph (2)—</text> <subparagraph commented="no" id="id035DE0D80E0946FFADFA38E36EA07959"><enum>(A)</enum><text>by striking subparagraph (B), and</text>
</subparagraph><subparagraph commented="no" id="idA6988D40E2D14D039038560555A09805"><enum>(B)</enum><text>by redesignating subparagraph (C) as subparagraph (B), and</text> </subparagraph></paragraph><paragraph commented="no" id="id3996798691B7438C90ED59DD2D6280B1"><enum>(2)</enum><text>by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idC5D42C250B084A2FA1ADA1D8F55DA5E3" style="OLC">
<paragraph commented="no" id="id9F27A2ACB9264812961FCE6F60978E12"><enum>(5)</enum><header>Controlled group and single taxpayer rules</header>
<subparagraph commented="no" id="idB0EA54966CC94BD18AD0571C70D4DBA4"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), in the case of a controlled group, the 6,000,000 barrel quantity specified in paragraph (1)(A)(i) and the 2,000,000 barrel quantity specified in paragraph (2)(A) shall be applied to the controlled group, and the 6,000,000 barrel quantity specified in paragraph (1)(A)(i) and the 60,000 barrel quantity specified in paragraph (2)(A) shall be apportioned among the brewers who are members of such group in such manner as the Secretary or his delegate shall by regulations prescribe. For purposes of the preceding sentence, the term <quote>controlled group</quote> has the meaning assigned to it by subsection (a) of section 1563, except that for such purposes the phrase <quote>more than 50 percent</quote> shall be substituted for the phrase <quote>at least 80 percent</quote> in each place it appears in such subsection. Under regulations prescribed by the Secretary or his delegate, principles similar to the principles of the preceding two sentences shall be applied to a group of brewers under common control where one or more of the brewers is not a corporation.</text>
</subparagraph><subparagraph commented="no" id="id8C1CEAEC81624BCC9EDD9643F8F5DCD1"><enum>(B)</enum><header>Foreign manufacturers and importers</header><text>For purposes of paragraph (4), in the case of a controlled group, the 6,000,000 barrel quantity specified in paragraph (1)(A)(i) shall be applied to the controlled group and apportioned among the members of such group in such manner as the Secretary or his delegate shall by regulations prescribe. For purposes of the preceding sentence, the term <quote>controlled group</quote> has the meaning given such term under subparagraph (A). Under regulations prescribed by the Secretary or his delegate, principles similar to the principles of the preceding two sentences shall be applied to a group of brewers under common control where one or more of the brewers is not a corporation.</text>
</subparagraph><subparagraph commented="no" id="id14DDD2AECC354D1EAD5047DCF451015A"><enum>(C)</enum><header>Single taxpayer</header><text>Pursuant to rules issued by the Secretary, two or more entities (whether or not under common control) that produce beer marketed under a similar brand, license, franchise, or other arrangement shall be treated as a single taxpayer for purposes of the application of this subsection.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="idF6AE2BB99FBD4F6EB8A7A46757EB222F"><enum>(e)</enum><header>Effective
date</header>
<paragraph commented="no" id="id9A0A4DC5BE764A599043B1245049950B"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2), the amendments made by this section shall apply to beer removed after September 30, 2019.</text>
</paragraph><paragraph commented="no" id="id8BDC2F28CA63474E9C40DEBAB10D4F8F"><enum>(2)</enum><header>Proration</header><text>For purposes of the fourth calendar quarter of 2019, the Secretary of the Treasury (or the Secretary's delegate) shall issue such guidance, rules, or regulations as are deemed appropriate to provide that the amendments made by this section are applied on a prorated basis for purposes of beer removed during such quarter.</text>
</paragraph></subsection></section><section id="id0A36F91515E246A196B7782983912D40"><enum>202.</enum><header>Use of wholesome products suitable for human food consumption in the production of fermented
beverages</header>
<subsection id="idAC67F1473CF643199B72E11ABC321B38"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than the date that is 1 year after the date of the enactment of this Act, the Secretary of the Treasury or the Secretary of the Treasury's delegate shall amend subpart F of part 25 of subchapter A of chapter I of title 27, Code of Federal Regulations, to ensure that, for purposes of such part, wholesome fruits, vegetables, and spices suitable for human food consumption that are generally recognized as safe for use in an alcoholic beverage and that do not contain alcohol are generally recognized as a traditional ingredient in the production of fermented beverages.</text>
</subsection><subsection id="idFD4BB9154D10490FB82F9108DF94681E"><enum>(b)</enum><header>Definition</header><text>For purposes of this section, the term <term>fruit</term> means whole fruit, fruit juices, fruit puree, fruit extract, or fruit concentrate.</text> </subsection><subsection id="idC65DCFE06D8E4061A75E2F4753403AB3"><enum>(c)</enum><header>Rule of construction</header><text>Nothing in this section shall be construed to revoke, prescribe, or limit any other exemptions from the formula requirements under subpart F of part 25 of subchapter A of chapter I of title 27, Code of Federal Regulations, for any ingredient that has been recognized before, on, or after the date of the enactment of this Act as a traditional ingredient in the production of fermented beverages.</text>
</subsection></section><section id="id7F1B19219A8C4442A189FE0C1118B86B"><enum>203.</enum><header>Simplification of rules regarding records, statements, and returns</header>
<subsection id="idDF0CC08B4F254B5BB03E37F4A691DF10"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subsection (a) of <external-xref legal-doc="usc" parsable-cite="usc/26/5555">section 5555</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following: <quote>The Secretary shall permit a person to employ a unified system for any records, statements, and returns required to be kept, rendered, or made under this section for any beer produced in the brewery for which the tax imposed by section 5051 has been determined, including any beer which has been removed for consumption on the premises of the brewery.</quote>.</text>
</subsection><subsection id="id0DC3E66F70A24CAD8B8F07249B6498C8"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to any calendar quarters beginning more than 1 year after the date of the enactment of this Act.</text>
</subsection></section><section id="idCAE49D7D3918458B8D142E058FDDE879"><enum>204.</enum><header>Transfer of beer between bonded facilities</header>
<subsection id="idE34EB43B3B1E4E0F9AAE78B8A7015122"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/5414">Section 5414</external-xref> of the Internal Revenue Code of 1986 is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="idDBE350A419D44A10B0461CA9FF9209D2" style="OLC"> <section id="id65BEC188869B4F47AED5A30957D6A7D2"><enum>5414.</enum><header>Transfer of beer between bonded facilities</header> <subsection id="idE12F9E8F0D7A489DB2596079742C5DA6"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Beer may be removed from one brewery to another bonded brewery, without payment of tax, and may be mingled with beer at the receiving brewery, subject to such conditions, including payment of the tax, and in such containers, as the Secretary by regulations shall prescribe, which shall include—</text>
<paragraph id="id3F659CBE8AE8466E8565C38315D071EE"><enum>(1)</enum><text display-inline="yes-display-inline">any removal from one brewery to another brewery belonging to the same brewer,</text> </paragraph><paragraph id="id0178A9B06D4440BFBFE5EFBF58604668"><enum>(2)</enum><text>any removal from a brewery owned by one corporation to a brewery owned by another corporation when—</text>
<subparagraph id="id1D24C1ADA3EE4A75A7B4C20DEDE8ADDD"><enum>(A)</enum><text>one such corporation owns the controlling interest in the other such corporation, or</text> </subparagraph><subparagraph id="id444EAC4ACBDF490EB665318173574F63"><enum>(B)</enum><text>the controlling interest in each such corporation is owned by the same person or persons, and</text>
</subparagraph></paragraph><paragraph id="idAD5DB3EA1135408D9C08AA83A9369585"><enum>(3)</enum><text>any removal from one brewery to another brewery when—</text> <subparagraph id="id09E09231B0704C8CA11DF51BD4C648DC"><enum>(A)</enum><text>the proprietors of transferring and receiving premises are independent of each other and neither has a proprietary interest, directly or indirectly, in the business of the other, and</text>
</subparagraph><subparagraph id="idD34EDE4878F948C1887F76BF09E6CEB7"><enum>(B)</enum><text>the transferor has divested itself of all interest in the beer so transferred and the transferee has accepted responsibility for payment of the tax.</text>
</subparagraph></paragraph></subsection><subsection id="id08DE8A068A684102A29C5913A1CAF7CB"><enum>(b)</enum><header>Transfer of liability for tax</header><text>For purposes of subsection (a)(3), such relief from liability shall be effective from the time of removal from the transferor's bonded premises, or from the time of divestment of interest, whichever is later.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id86E03B0EBADC4CEDB4ADDD1E54D154C6"><enum>(b)</enum><header>Removal from brewery by pipeline</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/5412">Section 5412</external-xref> of the Internal Revenue Code of 1986 is amended by inserting <quote>pursuant to section 5414 or</quote> before <quote>by pipeline</quote>.</text> </subsection><subsection id="idB07A6181D8594CD1967F55E0C3A909E8"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to any calendar quarters beginning more than 1 year after the date of the enactment of this Act.</text>
</subsection></section><enum>III</enum><header>Wine</header>
<section commented="no" id="id916D80DE6C9C4EB88987297D6A286FB8"><enum>301.</enum><header>Reduced rate of excise tax on certain wine</header>
<subsection commented="no" id="idC7E810EA85C3426C927838C371C7E340"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/5041">Section 5041(c)</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <paragraph commented="no" id="id0D53DDA1E19040D2A8E958E5DC4264B6"><enum>(1)</enum><text>in the heading, by striking <quote><header-in-text level="subsection" style="tax">for small domestic producers</header-in-text></quote>,</text>
</paragraph><paragraph commented="no" id="id5FDBF029681E4F9BBAFB88339E747229"><enum>(2)</enum><text>by amending paragraph (1) to read as follows:</text> <quoted-block display-inline="no-display-inline" id="id4789E69F771E41CDB61E86C942A3CC3F" style="OLC"> <paragraph commented="no" id="id047CAD95EF8A4FC49DE7B58BF4C9F09F"><enum>(1)</enum><header>Allowance of credit</header> <subparagraph commented="no" id="id75D226E0511246558DE29D56DAF5D957"><enum>(A)</enum><header>In general</header><text>There shall be allowed as a credit against any tax imposed by this title (other than chapters 2, 21, and 22) an amount equal to the sum of—</text>
<clause commented="no" id="idDBF6423558FD42C2AFCE77C244339134"><enum>(i)</enum><text>$1 per wine gallon on the first 30,000 wine gallons of wine, plus</text> </clause><clause commented="no" id="idE2A9D0A142F24A4894721EB487EF714A"><enum>(ii)</enum><text>90 cents per wine gallon on the first 100,000 wine gallons of wine to which clause (i) does not apply, plus</text>
</clause><clause commented="no" id="id9E72E02A439443459EBCB01D9CDE230B"><enum>(iii)</enum><text>53.5 cents per wine gallon on the first 620,000 wine gallons of wine to which clauses (i) and (ii) do not apply,</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">which are produced by the producer and removed during the calendar year for consumption or sale,
or which are imported by the importer into the United
States during the calendar year.</continuation-text></subparagraph><subparagraph commented="no" id="id94E3818089224ABA86AF1F3FEFA1DA9F"><enum>(B)</enum><header>Adjustment of credit for hard cider</header><text>In the case of wine described in subsection (b)(6), subparagraph (A) of this paragraph shall be applied—</text>
<clause commented="no" id="idDF0AE7A8605C43268BD847CF0A9AC953"><enum>(i)</enum><text>in clause (i) of such subparagraph, by substituting <quote>6.2 cents</quote> for <quote>$1</quote>,</text> </clause><clause commented="no" id="idC7A5ABDEC96D4FDEB82FFDA3D2ACDA5B"><enum>(ii)</enum><text>in clause (ii) of such subparagraph, by substituting <quote>5.6 cents</quote> for <quote>90 cents</quote>, and</text>
</clause><clause commented="no" id="id8C41591D704A45C4A8769305025CD3C6"><enum>(iii)</enum><text>in clause (iii) of such subparagraph, by substituting <quote>3.3 cents</quote> for <quote>53.5 cents</quote>.</text> </clause></subparagraph></paragraph><after-quoted-block>,</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="id59BFDC73FBF54F57B4983D4A7B931514"><enum>(3)</enum><text>by striking paragraph (2),</text>
</paragraph><paragraph commented="no" id="id3954C0CEB300432D9A6C788E318D3785"><enum>(4)</enum><text>by redesignating paragraphs (3) through (7) as paragraphs (2) through (6), respectively, and</text> </paragraph><paragraph commented="no" id="idE445B1AFAF0B4B85A6F183C4486F3F59"><enum>(5)</enum><text>by amending paragraph (6), as redesignated by paragraph (4) of this subsection, to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id1FD74BF5046C44BDBEA90576E5B80E3F" style="OLC">
<paragraph commented="no" id="id8928C0648CAD4769A43C8A6DE8CEEBF9"><enum>(6)</enum><header>Regulations</header><text>The Secretary may prescribe such regulations as may be necessary to carry out the purposes of this subsection, including regulations to ensure proper calculation of the credit provided in this subsection.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="id74D5AA9D9FE14EDE938C94A6E1EC6941"><enum>(b)</enum><header>Controlled group and single taxpayer rules</header><text>Paragraph (3) of section 5041(c), as redesignated by subsection (a)(4), is amended by striking <quote>section 5051(a)(2)(B)</quote> and inserting <quote>section 5051(a)(5)</quote>.</text> </subsection><subsection commented="no" id="idE6BAF31CFD604FC3BB65A725AAB255BB"><enum>(c)</enum><header>Allowance of credit for foreign manufacturers and importers</header><text>Subsection (c) of <external-xref legal-doc="usc" parsable-cite="usc/26/5041">section 5041</external-xref> of the Internal Revenue Code of 1986, as amended by subsection (a), is amended—</text>
<paragraph commented="no" id="id47E678AB8CFF4EAB9E58884D9B3C6CB4"><enum>(1)</enum><text>in subparagraph (A) of paragraph (1), by inserting <quote>but only if the importer is an electing importer under paragraph (6) and the wine gallons of wine have been assigned to the importer pursuant to such paragraph</quote> after <quote>into the United States during the calendar year</quote>,</text>
</paragraph><paragraph commented="no" id="id73A9D201F4124DAAADF25E0D6F002CDA"><enum>(2)</enum><text>by redesignating paragraph (6) as paragraph (7), and</text> </paragraph><paragraph commented="no" id="idCAE94C30E77240D1ABB7B13A6C2FF550"><enum>(3)</enum><text>by inserting after paragraph (5) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id8C4D1780456043A28021CE3D9449B1E0" style="OLC">
<paragraph commented="no" id="id861E9DC93E194E0DA9A87F8791CA47C5"><enum>(6)</enum><header>Allowance of credit for foreign manufacturers and importers</header>
<subparagraph commented="no" id="idDA59D6789F6643DC99829ADD31D1D989"><enum>(A)</enum><header>In general</header><text>In the case of any wine gallons of wine which have been produced outside of the United States and imported into the United States, the credit allowable under paragraph (1) (referred to in this paragraph as the <term>tax credit</term>) may be assigned by the person who produced such wine (referred to in this paragraph as the <term>foreign producer</term>), provided that such person makes an election described in subparagraph (B)(ii), to any electing importer of such wine gallons pursuant to the requirements established by the Secretary of the Treasury under subparagraph (B).</text>
</subparagraph><subparagraph commented="no" id="idF9EE6CC7520E42CE9242E7375C6C754B"><enum>(B)</enum><header>Assignment</header><text>The Secretary of the Treasury, in consultation with the Secretary of Health and Human Services and the Secretary of the Department of Homeland Security, shall, through such rules, regulations, and procedures as are determined appropriate, establish procedures for assignment of the tax credit provided under this paragraph, which shall include—</text>
<clause commented="no" id="id0400112A2F5440C0A78D0E764DE9C004"><enum>(i)</enum><text>a limitation to ensure that the number of wine gallons of wine for which the tax credit has been assigned by a foreign producer—</text>
<subclause commented="no" id="idD3BE283CC5D8443C896A3DC77ED6BAF4"><enum>(I)</enum><text>to any importer does not exceed the number of wine gallons of wine produced by such foreign producer during the calendar year which were imported into the United States by such importer, and</text>
</subclause><subclause commented="no" id="idDA49DF5EE35540D19E4B3C5A7FBC2CB8"><enum>(II)</enum><text>to all importers does not exceed the 750,000 wine gallons of wine to which the tax credit applies,</text> </subclause></clause><clause commented="no" id="idF1225DBEDC2F4E04AF03F74F0BB08D45"><enum>(ii)</enum><text>procedures that allow the election of a foreign producer to assign and an importer to receive the tax credit provided under this paragraph,</text>
</clause><clause commented="no" id="idFA32A50E02894417998ECA09873832C0"><enum>(iii)</enum><text>requirements that the foreign producer provide any information as the Secretary determines necessary and appropriate for purposes of carrying out this paragraph, and</text>
</clause><clause commented="no" id="idD365A32D72C84B868A737AD7DA9D31D1"><enum>(iv)</enum><text>procedures that allow for revocation of eligibility of the foreign producer and the importer for the tax credit provided under this paragraph in the case of any erroneous or fraudulent information provided under clause (iii) which the Secretary deems to be material to qualifying for such credit.</text>
</clause></subparagraph><subparagraph commented="no" id="id7C397EFBCF5C44B4AEF111F344C99CE6"><enum>(C)</enum><header>Controlled group</header>
<text>For purposes of this section, any importer making an election described in subparagraph (B)(ii) shall be deemed to be a member of the controlled group of the foreign producer, as described under paragraph (3).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="id8AA8298F3D434B61A3C1393E4620CE2A"><enum>(d)</enum><header>Effective
date</header>
<paragraph commented="no" id="idDC210E1D1F34430AA70A701B3E1795F6"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2), the amendments made by this section shall apply to wine removed after September 30, 2019.</text>
</paragraph><paragraph commented="no" id="idFEA1F2794B23491085057AD1A78FB47D"><enum>(2)</enum><header>Proration</header><text>For purposes of the fourth calendar quarter of 2019, the Secretary of the Treasury (or the Secretary's delegate) shall issue such guidance, rules, or regulations as are deemed appropriate to provide that the amendments made by this section are applied on a prorated basis for purposes of wine removed during such quarter.</text>
</paragraph></subsection></section><section commented="no" id="idBB1CBA50281440399BD1B35D1AE2E842"><enum>302.</enum><header>Adjustment of alcohol content level for application of excise tax rates</header>
<subsection commented="no" id="id1930346F6193495AA8649C177C06B598"><enum>(a)</enum><header>In general</header><text>Paragraphs (1) and (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/5041">section 5041(b)</external-xref> of the Internal Revenue Code of 1986 are amended by striking <quote>14 percent</quote> each place it appears and inserting <quote>16 percent</quote>.</text>
</subsection><subsection commented="no" id="idF5E84ED410BA4F6A8161B5D19DA157CB"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to wine removed during calendar years beginning after December 31, 2018.</text>
</subsection></section><section commented="no" id="id68C44A32A82A4F058CCBC898F1190819"><enum>303.</enum><header>Definition of mead and low alcohol by volume wine</header>
<subsection commented="no" id="id330E3E14478B48BF8D9EC469E34EA52D"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/5041">Section 5041</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <paragraph commented="no" id="idD19734AD8AEF4CD996F9F1C4750BBEB7"><enum>(1)</enum><text>in subsection (a), by striking <quote>Still wines</quote> and inserting <quote>Subject to subsection (h), still wines</quote>, and</text>
</paragraph><paragraph commented="no" id="id613ED8DDCDDC48D6B86831B5ED68A000"><enum>(2)</enum><text>by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="id79138B0177A447A194F1377650BD321F" style="OLC"> <subsection commented="no" id="id019D894331DB453DAF79747DEA4CCC32"><enum>(h)</enum><header>Mead and low alcohol by volume wine</header> <paragraph commented="no" id="idD816EE60F4994CDC988E3C4FD3D4DC5A"><enum>(1)</enum><header>In general</header><text>For purposes of subsections (a) and (b)(1), mead and low alcohol by volume wine shall be deemed to be still wines containing not more than 16 percent of alcohol by volume.</text>
</paragraph><paragraph commented="no" id="idFAF30B8613B641F48E6AE00D6BE18144"><enum>(2)</enum><header>Definitions</header>
<subparagraph commented="no" id="id1D4CAC74C52A461595CF7875D14D33BA"><enum>(A)</enum><header>Mead</header><text>For purposes of this section, the term <term>mead</term> means a wine—</text> <clause id="idC090D593AAB947459C579788631D6D93"><enum>(i)</enum><text>containing not more than 0.64 gram of carbon dioxide per hundred milliliters of wine, except that the Secretary may by regulations prescribe such tolerances to this limitation as may be reasonably necessary in good commercial practice,</text>
</clause><clause id="id3E51E213BD3B4A918BA55C39DF703CF4"><enum>(ii)</enum><text>which is derived solely from honey and water,</text>
</clause><clause id="id4C54E0BB387A4ADFBC416CF5D2C5DF16"><enum>(iii)</enum><text>which contains no fruit product or fruit flavoring, and</text> </clause><clause id="id13AEEA7114E24EC3A8627E8A7524F145"><enum>(iv)</enum><text>which contains less than 8.5 percent alcohol by volume.</text>
</clause></subparagraph><subparagraph id="id610CE8D36E1F458EB53D80D04EFADAA0"><enum>(B)</enum><header>Low alcohol by volume wine</header><text>For purposes of this section, the term <term>low alcohol by volume wine</term> means a wine—</text> <clause id="idE340EA5150E14882AEEAB4BBA82EEAE8"><enum>(i)</enum><text>containing not more than 0.64 gram of carbon dioxide per hundred milliliters of wine, except that the Secretary may by regulations prescribe such tolerances to this limitation as may be reasonably necessary in good commercial practice,</text>
</clause><clause id="id6DFE1A66E3364ECBA3A1AD42E0AB45CE"><enum>(ii)</enum><text>which is derived—</text> <subclause id="id0BBCB70CB1284DA5A58E4120259BB93F"><enum>(I)</enum><text>primarily from grapes, or</text>
</subclause><subclause id="id1A4EBC5B1F154DC2B3A8EFB3103A37D0"><enum>(II)</enum><text>from grape juice concentrate and water,</text> </subclause></clause><clause id="idA89867ED3BFC42329B5A1F82C4DA53D7"><enum>(iii)</enum><text>which contains no fruit product or fruit flavoring other than grape, and</text>
</clause><clause id="id843AD86E8B004A719BA640805910F50B"><enum>(iv)</enum><text>which contains less than 8.5 percent alcohol by volume.</text></clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="idEEFF307608B144B88C3D627080326D51"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to wine removed during calendar years beginning after December 31, 2018.</text>
</subsection></section><enum>IV</enum><header>Distilled Spirits</header>
<section id="H6F26ADE9011645BF9E55E5E1EBF70E03"><enum>401.</enum><header>Reduced rate of excise tax on certain distilled spirits</header>
<subsection id="idE41B638CFC07416D986659D62B1464EB"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/5001">Section 5001</external-xref> of the Internal Revenue Code of 1986 is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H0BE94A293E4A47DAA303BCB7E14C5F6E" style="OLC">
<subsection id="H8EA14188D3B54B64838377957536E7BA"><enum>(c)</enum><header>Reduced rate</header>
<paragraph id="idDA06CECC2D54469B8BD43019686BD75A"><enum>(1)</enum><header>In general</header><text>In the case of a distilled spirits operation, the otherwise applicable tax rate under subsection (a)(1) shall be—</text>
<subparagraph id="idF14564FA3C8C4361BD6063B4BBA1BEB5"><enum>(A)</enum><text>$2.70 per proof gallon on the first 100,000 proof gallons of distilled spirits, and</text> </subparagraph><subparagraph id="id0EB51C0151E84D2A8CC3CCD14C8420AD"><enum>(B)</enum><text>$13.34 per proof gallon on the first 22,130,000 of proof gallons of distilled spirits to which subparagraph (A) does not apply,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">which have been distilled or processed by such operation and removed during the calendar year for
consumption or sale, or which have been imported by the
importer into the United States during the calendar year.</continuation-text></paragraph><paragraph id="idFCAE38B107D842578A781109301AB957"><enum>(2)</enum><header>Controlled groups</header>
<subparagraph id="id70A2F6293017437381A262C852BAAD89"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a controlled group, the proof gallon quantities specified under subparagraphs (A) and (B) of paragraph (1) shall be applied to such group and apportioned among the members of such group in such manner as the Secretary or his delegate shall by regulations prescribe.</text>
</subparagraph><subparagraph id="idA3936A8431DA4392AF57D342A8C9DC45"><enum>(B)</enum><header>Definition</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), the term <quote>controlled group</quote> shall have the meaning given such term by subsection (a) of section 1563, except that <quote>more than 50 percent</quote> shall be substituted for <quote>at least 80 percent</quote> each place it appears in such subsection.</text>
</subparagraph><subparagraph id="idE4D60B428317410CB24A21C33BE00E93"><enum>(C)</enum><header>Rules for non-corporations</header><text display-inline="yes-display-inline">Under regulations prescribed by the Secretary, principles similar to the principles of subparagraphs (A) and (B) shall be applied to a group under common control where one or more of the persons is not a corporation.</text>
</subparagraph><subparagraph id="id841266B38D834747923E3C271A98D567"><enum>(D)</enum><header>Single taxpayer</header><text display-inline="yes-display-inline">Pursuant to rules issued by the Secretary, two or more entities (whether or not under common control) that produce distilled spirits marketed under a similar brand, license, franchise, or other arrangement shall be treated as a single taxpayer for purposes of the application of this subsection.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HE7C02523CB204E6B80C53800392FDDC4"><enum>(b)</enum><header>Conforming amendment</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/7652">Section 7652(f)(2)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>section 5001(a)(1)</quote> and inserting <quote>subsection (a)(1) of section 5001, determined as if subsection (c)(1) of such section did not apply</quote>.</text>
</subsection><subsection id="idA1F48EACC15E460ABCFA9B5A31BCD4CA"><enum>(c)</enum><header>Application of reduced tax rate for foreign manufacturers and importers</header><text>Subsection (c) of <external-xref legal-doc="usc" parsable-cite="usc/26/5001">section 5001</external-xref> of the Internal Revenue Code of 1986, as added by subsection (a), is amended—</text>
<paragraph id="id1ADCF6FB760E41629CA843416B8307E8"><enum>(1)</enum><text>in paragraph (1), by inserting <quote>but only if the importer is an electing importer under paragraph (3) and the proof gallons of distilled spirits have been assigned to the importer pursuant to such paragraph</quote> after <quote>into the United States during the calendar year</quote>, and</text>
</paragraph><paragraph id="idF0B3E7AE140D4059827592D2DA3653F6"><enum>(2)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="id09B133A32634403684C73C2C69AD1186" style="OLC"> <paragraph commented="no" id="idEDF1F437E9F5452FBE24B054364C7B00"><enum>(3)</enum><header>Reduced tax rate for foreign manufacturers and importers</header> <subparagraph commented="no" id="id2638F33DFB4340C2B9BD83B11C6E7E27"><enum>(A)</enum><header>In general</header><text>In the case of any proof gallons of distilled spirits which have been produced outside of the United States and imported into the United States, the rate of tax applicable under paragraph (1) (referred to in this paragraph as the <term>reduced tax rate</term>) may be assigned by the distilled sprits operation (provided that such operation makes an election described in subparagraph (B)(ii)) to any electing importer of such proof gallons pursuant to the requirements established by the Secretary of the Treasury under subparagraph (B).</text>
</subparagraph><subparagraph commented="no" id="id2BBEA70C7E5A4DD59C6A672E4FE0B2BF"><enum>(B)</enum><header>Assignment</header><text>The Secretary of the Treasury, in consultation with the Secretary of Health and Human Services and the Secretary of the Department of Homeland Security, shall, through such rules, regulations, and procedures as are determined appropriate, establish procedures for assignment of the reduced tax rate provided under this paragraph, which shall include—</text>
<clause commented="no" id="id91A1320EBB344D2ABDD77BE66D2D542C"><enum>(i)</enum><text>a limitation to ensure that the number of proof gallons of distilled spirits for which the reduced tax rate has been assigned by a distilled spirits operation—</text>
<subclause commented="no" id="idDDD49A1D7A4C449A958CA131C3553AD6"><enum>(I)</enum><text>to any importer does not exceed the number of proof gallons produced by such operation during the calendar year which were imported into the United States by such importer, and</text>
</subclause><subclause commented="no" id="id7AFAA52E999747FDB402AA67B0A72872"><enum>(II)</enum><text>to all importers does not exceed the 22,230,000 proof gallons of distilled spirits to which the reduced tax rate applies,</text>
</subclause></clause><clause commented="no" id="id393658FB5E934E71B71399DC9FAF1673"><enum>(ii)</enum><text>procedures that allow the election of a distilled spirits operation to assign and an importer to receive the reduced tax rate provided under this paragraph,</text>
</clause><clause commented="no" id="id7F7B954EC5D94052B779767D90536DF3"><enum>(iii)</enum><text>requirements that the distilled spirits operation provide any information as the Secretary determines necessary and appropriate for purposes of carrying out this paragraph, and</text>
</clause><clause commented="no" id="idEFD4C7AF3824498DB6BA6E460AA4EF6D"><enum>(iv)</enum><text>procedures that allow for revocation of eligibility of the distilled spirits operation and the importer for the reduced tax rate provided under this paragraph in the case of any erroneous or fraudulent information provided under clause (iii) which the Secretary deems to be material to qualifying for such reduced rate.</text>
</clause></subparagraph><subparagraph commented="no" id="id4B6019BDD7F44DFEAAFC2457CCBB7297"><enum>(C)</enum><header>Controlled group</header>
<clause commented="no" id="id39D73CCF6432415FA043200EC9C99C07"><enum>(i)</enum><header>In general</header><text>For purposes of this section, any importer making an election described in subparagraph (B)(ii) shall be deemed to be a member of the controlled group of the distilled spirits operation, as described under paragraph (2).</text>
</clause><clause commented="no" id="id5ED300A00AA9409B863F2FBDC1E87062"><enum>(ii)</enum><header>Apportionment</header><text>For purposes of this paragraph, in the case of a controlled group, rules similar to section 5051(a)(5)(B) shall apply.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="id8EF78330B59E4A9E9A03EF7711D88C2D"><enum>(d)</enum><header>Effective
date</header>
<paragraph commented="no" id="idF59C0279E4074B3FBD3B4B324A4209CA"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2), the amendments made by this section shall apply to distilled spirits removed after September 30, 2019.</text>
</paragraph><paragraph commented="no" id="id9D668C03E015446299D58736CD2BAF82"><enum>(2)</enum><header>Proration</header><text>For purposes of the fourth calendar quarter of 2019, the Secretary of the Treasury (or the Secretary's delegate) shall issue such guidance, rules, or regulations as are deemed appropriate to provide that the amendments made by this section are applied on a prorated basis for purposes of distilled spirits removed during such quarter.</text>
</paragraph></subsection></section><section commented="no" id="id663FC4179AA0447BBD5FAB01C95F22FD"><enum>402.</enum><header>Bulk distilled spirits</header>
<subsection commented="no" id="id115D1BDB34C54AADB744BCFE0B70D32C"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/5212">Section 5212</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <paragraph commented="no" id="id9ACD1FFE5A6C47FDA544BF3E9F0A3A89"><enum>(1)</enum><text>by striking <quote>Bulk distilled spirits on which</quote> and inserting <quote>Distilled spirits on which</quote>, and</text>
</paragraph><paragraph commented="no" id="idEC6A8388BFCE416C9CB46F15EC736230"><enum>(2)</enum><text>by striking <quote>bulk</quote> each place it appears.</text> </paragraph></subsection><subsection commented="no" id="id6FEEF1B9715142A8879E91916BE49DFD"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply distilled spirits transferred in bond in any calendar quarters beginning more than 1 year after the date of the enactment of this Act.</text>
</subsection></section><enum>V</enum><header>Funding</header>
<section id="id1051A1C9867A467DB0608462E71C5405"><enum>501.</enum><header>Increased funding for the Alcohol and Tobacco Tax and Trade Bureau</header>
<subsection id="id3705C75F85954DEDBAE53D20ECC0A1AA"><enum>(a)</enum><header>In general</header><text>For necessary expenses of carrying out section 1111(d) of the Homeland Security Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/6/531">6 U.S.C. 531(d)</external-xref>), there are authorized to be appropriated—</text>
<paragraph id="idD56593E892C54C0298FB77521607FAD7"><enum>(1)</enum><text>for fiscal year 2017, $116,439,000, to remain available until September 30, 2018; and</text> </paragraph><paragraph id="id1F3F88A29A234B91AB4B531031C909EB"><enum>(2)</enum><text>for fiscal year 2018, $119,081,000, to remain available until September 30, 2019.</text>
</paragraph></subsection><subsection id="id1596CBD8FFDD44FAA1B8961288E5E883"><enum>(b)</enum><header>Availability of funds</header><text>Of the amounts authorized to be appropriated under subsection (a), for each of fiscal years 2017 and 2018—</text>
<paragraph id="idF4C57239F8FF45A7859EE530C8808F76"><enum>(1)</enum><text>$5,000,000 shall be for the costs of accelerating the processing of formula and label applications;</text> </paragraph><paragraph id="id36F8E8D28D34483CB9D39FAAE6F93A91"><enum>(2)</enum><text>$5,000,000 shall be for the costs of programs to enforce trade practice violations of the Federal Alcohol Administration Act (<external-xref legal-doc="usc" parsable-cite="usc/27/201">27 U.S.C. 201</external-xref> et seq.); and</text>
</paragraph><paragraph id="id6B9D0FEFF22A416395645F2C5BA307EC"><enum>(3)</enum><text>$5,000,000 shall be for the purpose of carrying out the provisions of this Act and the amendments made by this Act, including accelerating the processing of permit applications for non-industrial alcohol production and distribution.</text></paragraph></subsection></section>