[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1695 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1695

To amend the Internal Revenue Code of 1986 to provide that beer or wine 
which may not be sold may be transferred to a distilled spirits plant, 
                        and for other purposes.


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                   IN THE SENATE OF THE UNITED STATES

                            October 6, 1999

  Mr. Bunning introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide that beer or wine 
which may not be sold may be transferred to a distilled spirits plant, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. RECYCLING OF CONSUMER BEVERAGE PRODUCTS WHICH MAY NOT BE 
              SOLD.

    (a) In General.--Section 5222(b) of the Internal Revenue Code of 
1986 (relating to receipt of distilling materials) is amended by 
striking ``or'' at the end of paragraph (2), by striking the period at 
the end of paragraph (3) and inserting ``, or'', and by adding at the 
end the following:
            ``(4) wine or beer with respect to which tax imposed by 
        this subtitle has been paid or determined.
Sections 5044 and 5056 shall apply to wine and beer received at a 
distilled spirits plant under paragraph (4), except that the Secretary 
shall provide in the regulations under such sections for credit or 
refund of tax paid on the wine or beer to the operator of the plant if 
the operator establishes that the operator bore the burden of the tax 
and that no other person has claimed a credit or refund of such tax.''
    (b) Effective Date.--The amendments made by this section shall 
apply to materials received at a distilled spirits plant on and after 
the date of the enactment of this Act.
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