Distillery Excise Tax Reform Act of 2013

“(c) Reduced rate for certain small domestic producers

“(1) In general—In the case of any person who produces not more than 60,000 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 60,000 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 60,000 proof gallons of distilled spirits during a calendar year.”