I 
111TH CONGRESS 
2D SESSION 
H. R. 5490 
To amend the Internal Revenue Code of 1986 to allow a credit against 
excise taxes with respect to distilled spirits and wine for certain distilled 
spirits or wine produced from domestic agricultural waste or byproducts. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 9, 2010 
Ms. GINNY BROWN-WAITE of Florida 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 allow a 
credit against excise taxes with respect to distilled spirits 
and wine for certain distilled spirits or wine produced 
from domestic agricultural waste or byproducts. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. EXCISE TAX CREDIT FOR CERTAIN DISTILLED 
SPIRITS PRODUCED FROM DOMESTIC AGRI-
CULTURAL WASTE OR BYPRODUCTS. 
(a) IN GENERAL.—Subchapter B of chapter 65 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new section: 
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‘‘SEC. 6433. CREDIT FOR CERTAIN DISTILLED SPIRITS PRO-
DUCED FROM AGRICULTURAL WASTE OR BY-
PRODUCTS. 
‘‘(a) IN GENERAL.—There shall be allowed against 
the taxes imposed by chapter 51 an amount equal to the 
sum of the credits determined under subsections (b) and 
(c). 
‘‘(b) CREDIT FOR DISTILLED SPIRITS PRODUCED 
FROM DOMESTIC AGRICULTURAL WASTE OR BYPROD-
UCTS.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the credit determined under this subsection is 
an amount equal to the product of— 
‘‘(A) 10 percent of the rate in effect under 
section 5001(a), multiplied by 
‘‘(B) the number of proof gallons of rum 
produced in the United States by the taxpayer 
using domestic agricultural waste or domestic 
agricultural byproducts as the principal dis-
tilling source. 
‘‘(2) RUM.—For purposes of this subsection, 
the term ‘rum’ has the meaning given such term by 
section 7652(e)(3). 
‘‘(3) CREDIT AVAILABLE TO PRODUCER.—The 
credit determined under this subsection shall be al-
lowed only to the producer of the rum described in 
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paragraph (1)(B), without regard to whether the tax 
on such rum under section 5001(a) is paid by such 
producer or by any other person. 
‘‘(4) VALUE ADDED REQUIREMENT.—Any proof 
gallon of rum shall in no event be treated as pro-
duced in the United States for purposes of this sub-
section unless the sum of— 
‘‘(A) the cost or value of the rum produced 
in the United States, plus 
‘‘(B) the direct costs of processing oper-
ations performed in the United States, 
equals or exceeds 50 percent of the value of such 
rum as of the time of its sale at retail (determined 
without regard to the tax imposed by section 5001). 
‘‘(c) CREDIT FOR CERTAIN DISTILLED SPIRITS OR 
WINE PRODUCED FROM DOMESTIC CITRUS WASTE OR 
BYPRODUCTS.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the credit determined under this subsection is 
an amount equal to the product of— 
‘‘(A) the number of gallons of distilled 
spirits or wines which are produced in the 
United States by the taxpayer using domestic 
citrus waste or domestic citrus byproducts as 
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the principal distilling or fermenting source, 
multiplied by 
‘‘(B) 10 percent of the rate applicable to 
such distilled spirits or wine under section 
5041(b). 
‘‘(2) COORDINATION WITH CREDIT FOR SMALL 
DOMESTIC PRODUCERS.—In the case of any wine to 
which paragraph (1)(A) and section 5041(c) both 
apply, the amount of the credit otherwise allowed 
under section 5041(c) with respect to such wine 
shall be reduced by the amount of the credit under 
this subsection. 
‘‘(3) CREDIT AVAILABLE TO PRODUCER.—The 
credit determined under this subsection shall be al-
lowed only to the producer of the distilled spirits or 
wines described in paragraph (1)(A), without regard 
to whether the tax on such distilled spirits or wines 
under section 5041(a) is paid by such producer or 
by any other person. 
‘‘(4) VALUE ADDED REQUIREMENT.—Any gal-
lon of distilled spirits or wines shall in no event be 
treated as produced in the United States for pur-
poses of this subsection unless the sum of— 
‘‘(A) the cost or value of the distilled spir-
its or wines produced in the United States, plus 
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