Bill > HR2520

This bill, titled the Distillery Innovation and Excise Tax Reform Act, proposes to amend the Internal Revenue Code to lower the federal excise tax on distilled spirits, which is a tax levied on the production or importation of alcoholic beverages. Specifically, it would reduce the tax rate from $13.50 per proof gallon to $9.00 per proof gallon. Furthermore, it introduces a lower rate of $2.70 per proof gallon for the first 100,000 proof gallons produced or imported. This reduced rate would also apply to a "controlled group" of corporations that are involved in distilling spirits, meaning that multiple related companies would share this lower rate for their combined initial production, with the tax burden apportioned among them as determined by the Secretary of the Treasury. The bill also clarifies that similar principles will apply to groups of taxpayers under common control even if they are not all corporations. These changes are intended to take effect for distilled spirits produced or imported in calendar years beginning after December 31, 2015.