Distillery Excise Tax Reform Act of 2015

Bill: 114-hr-1172
Sponsor: full_name: Rep. Larsen, Rick [D-WA-2]
Introduced: 2015-02-27
Policy area: Taxation
Subjects: Alcoholic beverages

Manufacturing

Sales and excise taxes

Small business
Latest action: action_date: 2015-02-27
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2015-02-27
action_desc: Introduced in House
text: <p><strong>Distillery Excise Tax Reform Act of 2015</strong></p> <p>Amends the Internal Revenue Code to allow a reduction (from $13.50 to $2.70 on each proof gallon produced in the United States) in the excise tax on distilled spirits for domestic distillers who produce not more than 100,000 proof gallons of distilled spirits during the calendar year.</p>

tv_txt: I 114th CONGRESS 1st Session H. R. 1172 IN THE HOUSE OF REPRESENTATIVES February 27, 2015 Mr. Larsen of Washington (for himself and Mr. Stivers ) 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 reduce the rate of tax on distilled spirits produced by small distilleries.

1. Short title This Act may be cited as the Distillery Excise Tax Reform Act of 2015 . 2. Reduced rate for small domestic distillers (a) In general Section 5001 of the Internal Revenue Code of 1986 is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: (c) Reduced rate for certain small domestic producers (1) In general In the case of any person who produces not more than 100,000 proof gallons of distilled spirits during the calendar year, the rate of tax imposed by subsection (a)(1) shall be $2.70 per proof gallon produced in the United States (and a proportionate tax at the like rate on all fractional parts of such a proof gallon). (2) Controlled groups In the case of a controlled group, the 100,000 proof gallon quantity specified in paragraph (1) shall be applied to the controlled group. For purposes of the preceding sentence, the term controlled group shall have the meaning given such term by subsection (a) of section 1563, except that more than 50 percent shall be substituted for at least 80 percent each place it appears in such subsection. Under regulations prescribed by the Secretary, principles similar to the principles of the preceding two sentences shall be applied to a group under common control where one or more of the persons is not a corporation. (3) Preventing abuse of reduced rate The Secretary shall prescribe regulations similar to the regulations prescribed under section 5051(a)(2)(C) to prevent the reduced rates provided in paragraph (1) from benefitting any person who produces more than 100,000 proof gallons of distilled spirits during a calendar year. . (b) Conforming amendments (1) Paragraph (1) of section 5010(a) is amended— (A) by inserting (if any) after excess , and (B) by inserting ($2.70 in the case of a person described in section 5001(c)) after $13.50 in subparagraph (A). (2) Paragraph (2) of section 5010(a) is amended by inserting ($2.70 in the case of a person described in section 5001(c)) after $13.50 . (c) Effective date The amendments made by this section shall take effect on January 1, 2016.