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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2122 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 2122

 To amend the Internal Revenue Code of 1986 to provide a special rule 
for allocating the cover over of distilled spirits taxes between Puerto 
                      Rico and the Virgin Islands.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 27, 2009

 Mr. Pierluisi (for himself, Mr. Crowley, Mr. Gutierrez, Mr. Serrano, 
and Ms. Velazquez) 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 provide a special rule 
for allocating the cover over of distilled spirits taxes between Puerto 
                      Rico and the Virgin Islands.

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

SECTION 1. SPECIAL RULE FOR ALLOCATING DISTILLED SPIRITS TAXES BETWEEN 
              PUERTO RICO AND THE VIRGIN ISLANDS.

    (a) In General.--Section 7652 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(i) Treatment of Certain Subsidies With Respect to Distilled 
Spirits.--
            ``(1) In general.--If--
                    ``(A) an amount would (but for this paragraph) be 
                covered into the treasury of a specified government 
                with respect to an article containing distilled 
                spirits, and
                    ``(B) the Secretary determines that such government 
                provided an unreasonable subsidy with respect to the 
                production of such article,
        then such amount shall not be covered into the treasury of such 
        government and shall be covered into the treasury of the other 
        specified government.
            ``(2) Unreasonable subsidies.--For purposes of this 
        subsection--
                    ``(A) In general.--A subsidy shall be considered 
                unreasonable if the Secretary determines that the 
                subsidy--
                            ``(i) is excessive relative to the amount 
                        which would (without regard to this subsection) 
                        be covered into the treasury of the government 
                        providing the subsidy with respect to the 
                        articles to which the subsidy relates, and
                            ``(ii) has the effect of encouraging the 
                        transfer of the production of such articles 
                        from the jurisdiction of the other specified 
                        government.
                    ``(B) Per se unreasonable subsidies.--In no event 
                may the Secretary determine that a subsidy is 
                reasonable with respect to the production of articles 
                if it exceeds an amount equal to 10 percent of the 
                amount which would (without regard to this subsection) 
                be covered into the treasury of the government 
                providing the subsidy with respect to such articles.
            ``(3) Specified government.--For purposes of this 
        paragraph, the term `specified government' means Puerto Rico 
        and the Virgin Islands.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distilled spirits brought into the United States after the date of 
the enactment of this Act.
                                 <all>
```