[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1444 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                S. 1444

 To amend the Internal Revenue Code of 1986 to reduce the rate of tax 
              regarding the taxation of distilled spirits.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 21, 2015

Mr. Peters (for himself, Mr. Sullivan, and Mrs. Gillibrand) 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 reduce the rate of tax 
              regarding the taxation of distilled spirits.

    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 OF TAX ON CERTAIN DISTILLED SPIRITS.

    (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.--
            ``(1) In general.--In the case of a distilled spirits 
        operation, the otherwise applicable tax rate under subsection 
        (a)(1) on the first 100,000 of proof gallons of distilled 
        spirits which are removed in the calendar year and which have 
        been distilled, processed, or bottled by such operation at a 
        qualified facility in the United States shall be $2.70 per 
        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.''.
    (b) Conforming Amendment.--Section 7652(f)(2) of the Internal 
Revenue Code of 1986 is amended by striking ``section 5001(a)'' and 
inserting ``subsections (a)(1) and (c)(1) of section 5001''.
    (c) Effective Date.--The amendments made by this section shall 
apply to distilled spirits produced in calendar years beginning after 
December 31, 2015.
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