I 

116TH CONGRESS 

1ST SESSION H. R. 1786 

To amend the Internal Revenue Code of 1986 to repeal the limitation on 

the cover over of distilled spirits taxes to Puerto Rico and Virgin Islands 

and to transfer a portion of such cover over to the Puerto Rico Conservation Trust Fund. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 14, 2019 

Miss GONZA ́LEZ-COLO ́N of Puerto Rico (for herself, Mr. YOUNG, Ms. 

VELA ́ZQUEZ, Mr. DUFFY, Mr. SERRANO, Mr. BISHOP of Utah, Mr. GRIJALVA, Mr. BRENDAN F. BOYLE of Pennsylvania, and Mr. SUOZZI) 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 repeal 

the limitation on the cover over of distilled spirits taxes 

to Puerto Rico and Virgin Islands and to transfer a 

portion of such cover over to the Puerto Rico Conservation Trust Fund. 

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


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•HR 1786 IH

1 SECTION 1. REPEAL OF LIMITATION ON COVER OVER OF 

2 DISTILLED SPIRITS TAXES TO PUERTO RICO 

3 AND VIRGIN ISLANDS. 

4 (a) IN GENERAL.—Section 7652 of the Internal Rev5 enue Code of 1986 is amended by striking subsection (f) 

6 and by redesignating subsections (g) and (h) as sub7 sections (f) and (g), respectively. 

8 (b) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to distilled spirits brought into the 

10 United States after December 31, 2018. 

11 SEC. 2. TRANSFER TO PUERTO RICO CONSERVATION 

12 TRUST FUND OF PORTION OF PUERTO RICO 

13 RUM COVER OVER. 

14 (a) IN GENERAL.—Section 7652(e) of the Internal 

15 Revenue Code of 1986 is amended by redesignating para16 graphs (3), (4), and (5) as paragraphs (4), (5), and (6), 

17 respectively, and by inserting after paragraph (2) the fol18 lowing new paragraph: 

19 ‘‘(2) TRANSFER TO PUERTO RICO CONSERVA20 TION TRUST FUND OF PORTION OF RUM COVER

21 OVER.— 

22 ‘‘(A) IN GENERAL.—From any amount 

23 otherwise required to be covered over to the 

24 treasury of Puerto Rico under this section with 

25 respect to taxes collected on rum under section 

26 5001(a)(1) or subsection (a), the Secretary of 


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•HR 1786 IH

1 the Treasury shall transfer to the Puerto Rico 

2 Conservation Trust Fund an amount equal to 

3 $0.46 per proof gallon of rum to which such 

4 cover over is attributable. Any amount trans5 ferred under the preceding sentence shall be 

6 treated for purposes of this section (other than 

7 this paragraph) as having been covered over to 

8 the treasury of Puerto Rico. 

9 ‘‘(B) PUERTO RICO CONSERVATION TRUST

10 FUND.—For purposes of this section, the term 

11 ‘Puerto Rico Conservation Trust Fund’ means 

12 the fund established pursuant to a Memo13 randum of Understanding between the United 

14 States Department of the Interior and the 

15 Commonwealth of Puerto Rico, dated December 

16 24, 1968.’’. 

17 (b) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to rum brought into the United 

19 States after December 31, 2018. 

Æ 


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