Bill > HR1378

This bill amends the Internal Revenue Code to extend a temporary policy regarding the "cover over" of distilled spirits taxes for Puerto Rico and the U.S. Virgin Islands. In tax terminology, "cover over" refers to the process of returning federal alcohol taxes collected on spirits produced in these U.S. territories back to their local governments. Specifically, the bill changes the expiration date of an existing tax provision from January 1, 2022, to January 1, 2032, which effectively continues a higher rate of tax reimbursement for these territories for another decade. The amendments will apply to distilled spirits imported into the United States after December 31, 2021, meaning that from 2022 onward, Puerto Rico and the Virgin Islands will continue to receive an increased percentage of the federal taxes collected on spirits produced in their jurisdictions. This financial mechanism helps support the local economies of these territories by providing them with additional tax revenue from their spirits industry.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/1378/all-info