I 

113TH CONGRESS 

1ST SESSION H. R. 1806 

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 

APRIL 26, 2013 

Mr. LARSEN of Washington (for himself, Mr. MCDERMOTT, Ms. DELBENE, 

and Mr. HECK of Washington) 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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Distillery Excise Tax 

5 Reform Act of 2013’’. 

6 SEC. 2. REDUCED RATE FOR SMALL DOMESTIC DIS7 TILLERS. 

8 (a) IN GENERAL.—Section 5001 of the Internal Rev9 enue Code of 1986 is amended by redesignating subsection 


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1 (c) as subsection (d) and by inserting after subsection (b) 

2 the following new subsection: 

3 ‘‘(c) REDUCED RATE FOR CERTAIN SMALL DOMES4 TIC PRODUCERS.— 

5 ‘‘(1) IN GENERAL.—In the case of any person 

6 who produces not more than 60,000 proof gallons of 

7 distilled spirits during the calendar year, the rate of 

8 tax imposed by subsection (a)(1) shall be $2.70 per 

9 proof gallon produced in the United States (and a 

10 proportionate tax at the like rate on all fractional 

11 parts of such a proof gallon). 

12 ‘‘(2) CONTROLLED GROUPS.—In the case of a 

13 controlled group, the 60,000 proof gallon quantity 

14 specified in paragraph (1) shall be applied to the 

15 controlled group. For purposes of the preceding sen16 tence, the term ‘controlled group’ shall have the 

17 meaning given such term by subsection (a) of section 

18 1563, except that ‘more than 50 percent’ shall be 

19 substituted for ‘at least 80 percent’ each place it ap20 pears in such subsection. Under regulations pre21 scribed by the Secretary, principles similar to the 

22 principles of the preceding two sentences shall be ap23 plied to a group under common control where one or 

24 more of the persons is not a corporation. 


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1 ‘‘(3) PREVENTING ABUSE OF REDUCED

2 RATE.—The Secretary shall prescribe regulations 

3 similar to the regulations prescribed under section 

4 5051(a)(2)(C) to prevent the reduced rates provided 

5 in paragraph (1) from benefitting any person who 

6 produces more than 60,000 proof gallons of distilled 

7 spirits during a calendar year.’’. 

8 (b) CONFORMING AMENDMENTS.— 

9 (1) Paragraph (1) of section 5010(a) is amend10 ed— 

11 (A) by inserting ‘‘(if any)’’ after ‘‘excess’’, 

12 and 

13 (B) by inserting ‘‘($2.70 in the case of a 

14 person described in section 5001(c))’’ after 

15 ‘‘$13.50’’ in subparagraph (A). 

16 (2) Paragraph (2) of section 5010(a) is amend17 ed by inserting ‘‘($2.70 in the case of a person de18 scribed in section 5001(c))’’ after ‘‘$13.50’’. 

19 (c) EFFECTIVE DATE.—The amendments made by 

20 this section shall take effect on January 1, 2014. 

Æ 


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