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(i) IN
GENERAL.—Upon notification
by the Secretary of the Interior that a Con-
servation Trust Fund transfer has not been
made by the Commonwealth of Puerto Rico,
the Secretary of the Treasury shall, except
as provided in clause (ii), deduct and with-
hold from the next cover overpayment to be
made to the treasury of Puerto Rico under
section 7652(e) of such Code an amount
equal to the appropriate Conservation Trust
Fund transfer and interest thereon at the
underpayment rate established under sec-
tion 6621 of such Code as of the due date
of such transfer. The Secretary of the Treas-
ury shall transfer such amount deducted
and withheld, and the interest thereon, di-
rectly to the Puerto Rico Conservation
Trust Fund.
(ii) GOOD-CAUSE
EXCEPTION.—If the
Secretary of the Interior finds, after con-
sultation with the Governor of Puerto Rico,
that the failure by the Commonwealth of
Puerto Rico to make a required transfer
was for good cause, and notifies the Sec-
retary of the Treasury of the finding of such
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good cause before the due date of the next
cover overpayment following the notification
of nontransfer, then the Secretary of the
Treasury shall not deduct the amount of
such nontransfer from any cover overpay-
ment.
(3) PUERTO RICO CONSERVATION TRUST FUND.—
For purposes of this subsection, the term ‘‘Puerto Rico
Conservation Trust Fund’’ means the fund established
pursuant to a Memorandum of Understanding be-
tween the United States Department of the Interior
and the Commonwealth of Puerto Rico, dated Decem-
ber 24, 1968.
SEC. 5233. INCOME TAX CREDIT FOR DISTILLED SPIRITS
WHOLESALERS AND FOR DISTILLED SPIRITS
IN CONTROL STATE BAILMENT WAREHOUSES
FOR COSTS OF CARRYING FEDERAL EXCISE
TAXES ON BOTTLED DISTILLED SPIRITS.
(a) IN GENERAL.—Subpart A of part I of subchapter
A of chapter 51 (relating to gallonage and occupational
taxes) is amended by adding at the end the following new
section:
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‘‘SEC. 5011. INCOME TAX CREDIT FOR AVERAGE COST OF
CARRYING EXCISE TAX.
‘‘(a) IN GENERAL.—For purposes of section 38, the
amount of the distilled spirits credit for any taxable year
is the amount equal to the product of—
‘‘(1) in the case of—
‘‘(A) any eligible wholesaler, the number of
cases of bottled distilled spirits—
‘‘(i) which were bottled in the United
States, and
‘‘(ii) which are purchased by such
wholesaler during the taxable year directly
from the bottler of such spirits, or
‘‘(B) any person which is subject to section
5005 and which is not an eligible wholesaler, the
number of cases of bottled distilled spirits which
are stored in a warehouse operated by, or on be-
half of, a State or political subdivision thereof,
or an agency of either, on which title has not
passed on an unconditional sale basis, and
‘‘(2) the average tax-financing cost per case for
the most recent calendar year ending before the begin-
ning of such taxable year.
‘‘(b) ELIGIBLE WHOLESALER.—For purposes of this
section, the term ‘eligible wholesaler’ means any person
which holds a permit under the Federal Alcohol Adminis-
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tration Act as a wholesaler of distilled spirits which is not
a State or political subdivision thereof, or an agency of ei-
ther.
‘‘(c) AVERAGE TAX-FINANCING COST.—
‘‘(1) IN GENERAL.—For purposes of this section,
the average tax-financing cost per case for any cal-
endar year is the amount of interest which would ac-
crue at the deemed financing rate during a 60-day
period on an amount equal to the deemed Federal ex-
cise tax per case.
‘‘(2) DEEMED FINANCING RATE.—For purposes
of paragraph (1), the deemed financing rate for any
calendar year is the average of the corporate overpay-
ment rates under paragraph (1) of section 6621(a)
(determined without regard to the last sentence of
such paragraph) for calendar quarters of such year.
‘‘(3) DEEMED
FEDERAL
EXCISE
TAX
PER
CASE.—For purposes of paragraph (1), the deemed
Federal excise tax per case is $25.68.
‘‘(d) OTHER DEFINITIONS AND SPECIAL RULES.—For
purposes of this section—
‘‘(1) CASE.—The term ‘case’ means 12 80-proof
750-milliliter bottles.
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‘‘(2) NUMBER OF CASES IN LOT.—The number of
cases in any lot of distilled spirits shall be determined
by dividing the number of liters in such lot by 9.’’.
(b) CREDIT TREATED AS PART OF GENERAL BUSI-
NESS CREDIT.—Section 38(b) (relating to current year
business credit) is amended by striking ‘‘plus’’ at the end
of paragraph (18), by striking the period at the end of para-
graph (19), and inserting ‘‘, plus’’, and by adding at the
end the following new paragraph:
‘‘(20) the distilled spirits credit determined
under section 5011(a).’’.
(c) CONFORMING AMENDMENT.—The table of sections
for subpart A of part I of subchapter A of chapter 51 is
amended by adding at the end the following new item:
‘‘Sec. 5011. Income tax credit for average cost of carrying excise tax.’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall apply to taxable years beginning after Sep-
tember 30, 2005.
SEC. 5234. QUARTERLY EXCISE TAX FILING FOR SMALL AL-
COHOL EXCISE TAXPAYERS.
(a) IN GENERAL.—Subsection (d) of section 5061 (re-
lating to time for collecting tax on distilled spirits, wines,
and beer) is amended by redesignating paragraphs (4) and
(5) as paragraphs (5) and (6), respectively, and by insert-
ing after paragraph (3) the following new paragraph:
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‘‘(4) TAXPAYERS
LIABLE
FOR
TAXES
OF
NOT
MORE THAN $50,000.—
‘‘(A) IN GENERAL.—In the case of any tax-
payer who reasonably expects to be liable for not
more than $50,000 in taxes imposed with respect
to distilled spirits, wines, and beer under sub-
parts A, C, and D for the calendar year and who
was liable for not more than $50,000 in such
taxes in the preceding calendar year, the last
day for the payment of tax shall be the 14th day
after the last day of the calendar quarter during
which the action giving rise to the imposition of
such tax occurs.
‘‘(B) NO
APPLICATION
AFTER
LIMIT
EX-
CEEDED.—Subparagraph (A) shall not apply to
any taxpayer for any portion of the calendar
year following the first date on which the aggre-
gate amount of tax due under subparts A, C, and
D from such taxpayer during such calendar year
exceeds $50,000, and any tax under such sub-
parts which has not been paid on such date shall
be due on the 14th day after the last day of the
semimonthly period in which such date occurs.
‘‘(C) CALENDAR
QUARTER.—For purposes
of this paragraph, the term ‘calendar quarter’