Bill > S1986

This bill amends the Internal Revenue Code of 1986 to extend a temporary tax provision related to "cover over" taxes for distilled spirits in Puerto Rico and the U.S. Virgin Islands. In tax terminology, "cover over" refers to the process where federal excise taxes collected on rum produced in U.S. territories are returned (or "covered over") to those territories. Specifically, the bill changes the expiration date of an existing tax provision from January 1, 2022, to January 1, 2032, effectively extending the current higher tax transfer rate for another decade. The amendment will apply to all distilled spirits brought into the United States after December 31, 2021, which means Puerto Rico and the Virgin Islands will continue to receive a larger share of federal rum excise taxes for the next ten years. This type of legislation helps support the economies of these U.S. territories by providing them with additional tax revenue from their rum production.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1986/all-info