Bill > HR1172

This bill, titled the Distillery Excise Tax Reform Act of 2015, amends the Internal Revenue Code to lower the federal excise tax on distilled spirits for small domestic distilleries. Specifically, it reduces the tax rate from $13.50 to $2.70 per proof gallon for any producer that manufactures 100,000 proof gallons or less of distilled spirits in a calendar year. A "proof gallon" is a U.S. gallon containing 50% alcohol by volume at 60 degrees Fahrenheit. The bill also includes provisions to apply this limit to "controlled groups" of businesses, meaning if multiple related companies are under common ownership, their combined production counts towards the 100,000-gallon limit. The Secretary of the Treasury is tasked with creating regulations to prevent larger producers from unfairly benefiting from this reduced rate, and these changes are set to take effect on January 1, 2016.