[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1172 Introduced in House (IH)]

114th CONGRESS
  1st Session
                                H. R. 1172

To amend the Internal Revenue Code of 1986 to reduce the rate of tax on 
           distilled spirits produced by small distilleries.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 27, 2015

 Mr. Larsen of Washington (for himself and Mr. Stivers) 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 reduce the rate of tax on 
           distilled spirits produced by small distilleries.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Distillery Excise Tax Reform Act of 
2015''.

SEC. 2. REDUCED RATE FOR SMALL DOMESTIC DISTILLERS.

    (a) In General.--Section 5001 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:
    ``(c) Reduced Rate for Certain Small Domestic Producers.--
            ``(1) In general.--In the case of any person who produces 
        not more than 100,000 proof gallons of distilled spirits during 
        the calendar year, the rate of tax imposed by subsection (a)(1) 
        shall be $2.70 per proof gallon produced in the United States 
        (and a proportionate tax at the like rate on all fractional 
        parts of such a proof gallon).
            ``(2) Controlled groups.--In the case of a controlled 
        group, the 100,000 proof gallon quantity specified in paragraph 
        (1) shall be applied to the controlled group. For purposes of 
        the preceding sentence, the term `controlled group' shall have 
        the meaning given such term by subsection (a) of section 1563, 
        except that `more than 50 percent' shall be substituted for `at 
        least 80 percent' each place it appears in such subsection. 
        Under regulations prescribed by the Secretary, principles 
        similar to the principles of the preceding two sentences shall 
        be applied to a group under common control where one or more of 
        the persons is not a corporation.
            ``(3) Preventing abuse of reduced rate.--The Secretary 
        shall prescribe regulations similar to the regulations 
        prescribed under section 5051(a)(2)(C) to prevent the reduced 
        rates provided in paragraph (1) from benefitting any person who 
        produces more than 100,000 proof gallons of distilled spirits 
        during a calendar year.''.
    (b) Conforming Amendments.--
            (1) Paragraph (1) of section 5010(a) is amended--
                    (A) by inserting ``(if any)'' after ``excess'', and
                    (B) by inserting ``($2.70 in the case of a person 
                described in section 5001(c))'' after ``$13.50'' in 
                subparagraph (A).
            (2) Paragraph (2) of section 5010(a) is amended by 
        inserting ``($2.70 in the case of a person described in section 
        5001(c))'' after ``$13.50''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2016.
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