,i  #aacth ,,congress  #ast ,session    
,h4 ,r4 #ahjf  ,,in ,,the ,,house ,,of  
,,representatives  ,april #bf1 #bjac    
,mr4 ,larsen of ,washington 7for        
himself1 ,mr4 ,mc,dermott1 ,ms4         
,del,bene1 and ,mr4 ,heck of            
,washington7 introduced the following   
bill2 which was referred to the         
,committee on ,ways and ,means  ,a      
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to reduce the rate of   
tax on distilled spirits produced by    
small distilleries4  #a4 ,short title   
,this ,act may be cited as the          
,distillery ,excise ,tax ,reform ,act of
 #bjac4  #b4 ,reduced rate for small    
domestic distillers  7a7 ,in general    
,section #ejja of the ,internal ,revenue
 ,code of #aihf is amended by           
redesignating subsection 7c7 as         
subsection 7d7 and by inserting after   
subsection 7b7 the following new        
subsection3  7c7 ,reduced rate for      
certain small domestic producers  7#a7  
,in general ,in the case of any person  

who produces not more than #fj1jjj proof
 gallons of distilled spirits during the
 calendar year1 the rate of tax imposed 
by subsection 7a77#a7 shall be #b4gj per
 proof gallon produced in the ,united   
,states 7and a proportionate tax at the 
like rate on all fractional parts of    
such a proof gallon74  7#b7 ,controlled 
groups ,in the case of a controlled     
group1 the #fj1jjj proof gallon quantity
 specified in paragraph 7#a7 shall be   
applied to the controlled group4 ,for   
purposes of the preceding sentence1 the 
term controlled group shall have the    
meaning given such term by subsection   
7a7 of section #aefc1 except that more  
than #ej percent shall be substituted   
for at least #hj percent each place it  
appears in such subsection4 ,under      
regulations prescribed by the           
,secretary1 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 corporation4    

7#c7 ,preventing abuse of reduced rate  
,the ,secretary shall prescribe         
regulations similar to the regulations  
prescribed under section                
#ejea7;a77#b77;,c7 to prevent the       
reduced rates provided in paragraph 7#a7
 from benefitting any person who        
produces more than #fj1jjj proof gallons
 of distilled spirits during a calendar 
year4  4  7b7 ,conforming amendments    
7#a7 ,paragraph 7#a7 of section         
#ejaj7;a7 is amended--  7,a7 by         
inserting 7if any7 after excess1 and    
7,b7 by inserting 7#b4gj in the case of 
a person described in section #ejja7;c77
 after #ac4ej in subparagraph 7,a74     
7#b7 ,paragraph 7#b7 of section         
#ejaj7;a7 is amended by inserting 7#b4gj
 in the case of a person described in   
section #ejja7;c77 after #ac4ej4  7c7   
,effective date ,the amendments made by 
this section shall take effect on       
,january #a1 #bjad4