,,ii  #aadth ,,congress  #ast ,session  
,s4 #addd  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,may #ba1      
#bjae,mr4 ,peters 7for himself1 ,mr4    
,sullivan1 and ,mrs4 ,gillibrand7       
introduced the following bill2 which was
 read twice and referred to the         
,committee on ,finance  ,a ,,bill  ,to  
amend the ,internal ,revenue ,code of   
#aihf to reduce the rate of tax         
regarding the taxation of distilled     
spirits4  #a4 ,short title ,this ,act   
may be cited as the ,distillery ,excise 
,tax ,reform ,act of #bjae4  #b4        
,reduced rate of tax on certain         
distilled spirits  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  7#a7 ,in
 general ,in the case of a distilled    
spirits operation1 the otherwise        
applicable tax rate under subsection    

7a77#a7 on the first #ajj1jjj of proof  
gallons of distilled spirits which are  
removed in the calendar year and which  
have been distilled1 processed1 or      
bottled by such operation at a qualified
 facility in the ,united ,states shall  
be #b4gj per proof gallon4  7#b7        
,controlled groups ,in the case of a    
controlled group1 the #ajj1jjj 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  4  7b7 ,conforming        

amendment ,section #gfeb7;f77#b7 of the 
,internal ,revenue ,code of #aihf is    
amended by striking section #ejja7;a7   
and inserting subsections 7a77#a7 and   
7c77#a7 of section #ejja4  7c7          
,effective date ,the amendments made by 
this section shall apply to distilled   
spirits produced in calendar years      
beginning after ,december #ca1 #bjae4