Section 1 Short title
This Act may be cited as the “Distillery Excise Tax Reform Act of 2015”.
Distillery Excise Tax Reform Act of 2015
A BILL
To amend the Internal Revenue Code of 1986 to reduce the rate of tax regarding the taxation of distilled spirits.
Sec. 2 Reduced rate of tax on certain distilled spirits
In general— Section 5001 of the Internal Revenue Code of 1986 is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection:
“(c) Reduced rate
“(1) In general—In the case of a distilled spirits operation, the otherwise applicable tax rate under subsection (a)(1) on the first 100,000 of proof gallons of distilled spirits which are removed in the calendar year and which have been distilled, processed, or bottled by such operation at a qualified facility in the United States shall be $2.70 per proof gallon.
“(2) Controlled groups—In the case of a controlled group, the 100,000 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.”
Conforming amendment— Section 7652(f)(2) of the Internal Revenue Code of 1986 is amended by striking “section 5001(a)” and inserting “subsections (a)(1) and (c)(1) of section 5001”.
Effective date— The amendments made by this section shall apply to distilled spirits produced in calendar years beginning after December 31, 2015.