This bill amends the Internal Revenue Code, with respect to the tax treatment of certain alcoholic beverages, to:

• exclude the aging period from the production period for beer, wine, or distilled spirits for purposes of determining whether a taxpayer can expense, rather than capitalize, interest costs paid or incurred during the production period;
• reduce excise tax rates on beer and distilled spirits;
• modify the small wine producer tax credit to increase the amount of the credit, expand the producers that are covered, and specify an adjustment for hard cider;
• modify the alcohol content limitations that apply to certain wines for tax purposes;
• specify definitions for "mead" and "low alcohol by volume wine;"
• modify requirements for records, statements, and returns for certain breweries; and
• permit the transfer of beer between bonded facilities without payment of tax.

The Department of the Treasury must amend applicable regulations with respect to the use of wholesome products suitable for human consumption in the production of fermented beverages.