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 Conserva-
tion 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. GRI-
JALVA, Mr. BRENDAN F. BOYLE of Pennsylvania, and Mr. SUOZZI) intro-
duced 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 Conserva-
tion Trust Fund. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
VerDate Sep 11 2014 
04:55 Mar 29, 2019
Jkt 089200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H1786.IH
H1786
kjohnson on DSK79L0C42 with BILLS
SECTION 1. REPEAL OF LIMITATION ON COVER OVER OF 
DISTILLED SPIRITS TAXES TO PUERTO RICO 
AND VIRGIN ISLANDS. 
(a) IN GENERAL.—Section 7652 of the Internal Rev-
enue Code of 1986 is amended by striking subsection (f) 
and by redesignating subsections (g) and (h) as sub-
sections (f) and (g), respectively. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distilled spirits brought into the 
United States after December 31, 2018. 
SEC. 2. TRANSFER TO PUERTO RICO CONSERVATION 
TRUST FUND OF PORTION OF PUERTO RICO 
RUM COVER OVER. 
(a) IN GENERAL.—Section 7652(e) of the Internal 
Revenue Code of 1986 is amended by redesignating para-
graphs (3), (4), and (5) as paragraphs (4), (5), and (6), 
respectively, and by inserting after paragraph (2) the fol-
lowing new paragraph: 
‘‘(2) TRANSFER TO PUERTO RICO CONSERVA-
TION
TRUST
FUND
OF
PORTION
OF
RUM
COVER 
OVER.— 
‘‘(A) IN
GENERAL.—From any amount 
otherwise required to be covered over to the 
treasury of Puerto Rico under this section with 
respect to taxes collected on rum under section 
5001(a)(1) or subsection (a), the Secretary of 
VerDate Sep 11 2014 
04:55 Mar 29, 2019
Jkt 089200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H1786.IH
H1786
kjohnson on DSK79L0C42 with BILLS
the Treasury shall transfer to the Puerto Rico 
Conservation Trust Fund an amount equal to 
$0.46 per proof gallon of rum to which such 
cover over is attributable. Any amount trans-
ferred under the preceding sentence shall be 
treated for purposes of this section (other than 
this paragraph) as having been covered over to 
the treasury of Puerto Rico. 
‘‘(B) PUERTO RICO CONSERVATION TRUST 
FUND.—For purposes of this section, the term 
‘Puerto Rico Conservation Trust Fund’ means 
the fund established pursuant to a Memo-
randum of Understanding between the United 
States Department of the Interior and the 
Commonwealth of Puerto Rico, dated December 
24, 1968.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to rum brought into the United 
States after December 31, 2018. 
Æ 
VerDate Sep 11 2014 
04:55 Mar 29, 2019
Jkt 089200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6301
E:\BILLS\H1786.IH
H1786
kjohnson on DSK79L0C42 with BILLS