[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5490 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 5490

 To amend the Internal Revenue Code of 1986 to allow a credit against 
  excise taxes with respect to distilled spirits and wine for certain 
distilled spirits or wine produced from domestic agricultural waste or 
                              byproducts.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 9, 2010

 Ms. Ginny Brown-Waite of Florida introduced the following bill; which 
            was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to allow a credit against 
  excise taxes with respect to distilled spirits and wine for certain 
distilled spirits or wine produced from domestic agricultural waste or 
                              byproducts.

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

SECTION 1. EXCISE TAX CREDIT FOR CERTAIN DISTILLED SPIRITS PRODUCED 
              FROM DOMESTIC AGRICULTURAL WASTE OR BYPRODUCTS.

    (a) In General.--Subchapter B of chapter 65 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 6433. CREDIT FOR CERTAIN DISTILLED SPIRITS PRODUCED FROM 
              AGRICULTURAL WASTE OR BYPRODUCTS.

    ``(a) In General.--There shall be allowed against the taxes imposed 
by chapter 51 an amount equal to the sum of the credits determined 
under subsections (b) and (c).
    ``(b) Credit for Distilled Spirits Produced From Domestic 
Agricultural Waste or Byproducts.--
            ``(1) In general.--For purposes of this section, the credit 
        determined under this subsection is an amount equal to the 
        product of--
                    ``(A) 10 percent of the rate in effect under 
                section 5001(a), multiplied by
                    ``(B) the number of proof gallons of rum produced 
                in the United States by the taxpayer using domestic 
                agricultural waste or domestic agricultural byproducts 
                as the principal distilling source.
            ``(2) Rum.--For purposes of this subsection, the term `rum' 
        has the meaning given such term by section 7652(e)(3).
            ``(3) Credit available to producer.--The credit determined 
        under this subsection shall be allowed only to the producer of 
        the rum described in paragraph (1)(B), without regard to 
        whether the tax on such rum under section 5001(a) is paid by 
        such producer or by any other person.
            ``(4) Value added requirement.--Any proof gallon of rum 
        shall in no event be treated as produced in the United States 
        for purposes of this subsection unless the sum of--
                    ``(A) the cost or value of the rum produced in the 
                United States, plus
                    ``(B) the direct costs of processing operations 
                performed in the United States,
        equals or exceeds 50 percent of the value of such rum as of the 
        time of its sale at retail (determined without regard to the 
        tax imposed by section 5001).
    ``(c) Credit for Certain Distilled Spirits or Wine Produced From 
Domestic Citrus Waste or Byproducts.--
            ``(1) In general.--For purposes of this section, the credit 
        determined under this subsection is an amount equal to the 
        product of--
                    ``(A) the number of gallons of distilled spirits or 
                wines which are produced in the United States by the 
                taxpayer using domestic citrus waste or domestic citrus 
                byproducts as the principal distilling or fermenting 
                source, multiplied by
                    ``(B) 10 percent of the rate applicable to such 
                distilled spirits or wine under section 5041(b).
            ``(2) Coordination with credit for small domestic 
        producers.--In the case of any wine to which paragraph (1)(A) 
        and section 5041(c) both apply, the amount of the credit 
        otherwise allowed under section 5041(c) with respect to such 
        wine shall be reduced by the amount of the credit under this 
        subsection.
            ``(3) Credit available to producer.--The credit determined 
        under this subsection shall be allowed only to the producer of 
        the distilled spirits or wines described in paragraph (1)(A), 
        without regard to whether the tax on such distilled spirits or 
        wines under section 5041(a) is paid by such producer or by any 
        other person.
            ``(4) Value added requirement.--Any gallon of distilled 
        spirits or wines shall in no event be treated as produced in 
        the United States for purposes of this subsection unless the 
        sum of--
                    ``(A) the cost or value of the distilled spirits or 
                wines produced in the United States, plus
                    ``(B) the direct costs of processing operations 
                performed in the United States,
        equals or exceeds 50 percent of the value of such distilled 
        spirits or wines as of the time of their sale at retail 
        (determined without regard to the tax imposed by section 
        5041).''.
    (b) Clerical Amendment.--The table of sections for subchapter B of 
chapter 65 of the Internal Revenue Code of 1986 is amended by adding at 
the end the following new item:

``Sec. 6433. Credit for certain distilled spirits produced from 
                            agricultural waste or byproducts.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to distilled spirits and wine produced after the date of the 
enactment of this Act.
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