,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #cfb  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,febru>y #f1 #bjai,mr4 
,wyd5 7= himself1 ,mr4 ,blunt1 ,mr4     
,c>p]1 ,mr4 ,rob]ts1 ,ms4 ,/ab5[1 ,mr4  
,moran1 ,mr4 ,casey1 ,mr4 ,portman1 ,mr4
 ,b5net1 ,mrs4 ,capito1 ,ms4 ,baldw91 & 
,mr4 ,g>dn]7 introduc$ ! foll[+ bill2   
:i* 0 read twice & ref]r$ to !          
,committee on ,f9ance  ,a ,,bill  ,to   
am5d ! ,int]nal ,rev5ue ,code ( #aihf to
 re=m taxation ( alcoholic bev]ages4    
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,craft ,bev]age ,mod]nization & ,tax  
,re=m ,act ( #bjai4  #b4 ,p]man5t       
ext5sion ( c]ta9 provisions  7a7        
,production p]iod = be]1 w9e1 & di/ill$ 
spirits  7#a7 ,9 g5]al ,p>agraph 7#d7 ( 
section #bfc;,a7f7 ( ! ,int]nal ,rev5ue 
,code ( #aihf1 z add$ by section        
#achja7;a7 ( ,public ,law #aae-ig1 is   
am5d$ to read z foll[s3  7#d7 ,exemption
 = ag+ process ( be]1 w9e1 & di/ill$    
spirits ,= purposes ( ?is subsection1 ! 
production p]iod %all n include ! ag+   

p]iod =-- 7,a7 be] 7z def9$ 9 section   
#ejeb7;a771  7,b7 w9e 7z describ$ 9     
section #ejda7;a771 or  7,c7 di/ill$    
spirits 7z def9$ 9 section              
#ejjb7;a77#h771 except su* spirits t are
 unfit = use = bev]age purposes4  4     
7#b7 ,effective date ,! am5dm5t made by 
?is subsection %all apply to int]e/ co/s
 paid or accru$ 9 cal5d> ye>s beg9n+    
aft] ,decemb] #ca1 #bjag4  7b7 ,r$uc$   
rate ( excise tax on be]  7#a7 ,9 g5]al 
,p>agraph 7#a7 ( section #ejea7;a7 ( !  
,int]nal ,rev5ue ,code ( #aihf1 z am5d$ 
by section #achjb7;a7 ( ,public ,law    
#aae-ig1 is am5d$ to read z foll[s3     
7#a7 ,9 g5]al  7,a7 ,imposition ( tax ,a
 tax is h]eby impos$ on all be] brew$ or
 produc$1 & remov$ = consumption or     
sale1 )9 ! ,unit$ ,/ates1 or import$    
into ! ,unit$ ,/ates4 ,except z provid$ 
9 p>agraph 7#b71 ! rate ( su* tax %all  
be--  7i7 #af on ! fir/ #f1jjj1jjj      
b>rels ( be]-- 7,i7 brew$ by ! brew] &  
remov$ dur+ ! cal5d> ye> = consumption  
or sale1 or  7,,ii7 import$ by ! import]

 into ! ,unit$ ,/ates dur+ ! cal5d> ye>1
 &  7ii7 #ah on any b>rels ( be] to :i* 
clause 7i7 does n apply4  7,b7 ,b>rel ,=
 purposes ( ?is section1 a b>rel %all   
conta9 n m ?an #ca gallons ( be]1 & any 
tax impos$ "u ?is section %all be appli$
 at a l rate = any o!r quantity or =    
fractional p>ts ( a b>rel4  4  7#b7     
,r$uc$ rate = c]ta9 dome/ic production  
,subp>agraph 7,a7 ( section             
#ejea7;a77#b7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf1 z am5d$ by section #achjb7;b7 
( ,public ,law #aae-ig1 is am5d$--  7,a7
 9 ! head+1 by ins]t+ #c4ej a b>rel be=e
 rate1 &  7,b7 by /rik+ #g & all t      
foll[s ?r\gh ,janu>y #a1 #bjbj7 & ins]t+
 #c4ej4  7#c7 ,application ( r$uc$ tax  
rate = =eign manufactur]s & import]s    
,subsection 7a7 ( section #ejea ( !     
,int]nal ,rev5ue ,code ( #aihf1 z am5d$ 
by section #achjb7;c7 ( ,public ,law    
#aae-ig1 is am5d$--  7,a7 9 subp>agraph 
7,a77i77,,ii7 ( p>agraph 7#a71 z am5d$  
by p>agraph 7#a7 ( ?is subsection1 by   
ins]t+ b only if ! import] is an elect+ 

import] "u p>agraph 7#d7 & ! b>rels h   
be5 assign$ to ! import] pursuant to su*
 p>agraph aft] dur+ ! cal5d> ye>1 &     
7,b7 9 p>agraph 7#d7-- 7i7 9 subp>agraph
 7,a71 by /rik+ p>agraph 7#a77;,c7 &    
ins]t+ p>agraph 7#a77;,a71 &  7ii7 9    
subp>agraph 7,b71 by /rik+ ,! ,secret>y 
& ins]t+ ,! ,secret>y ( ! ,treasury1 9  
consultation ) ! ,secret>y ( ,heal? &   
,human ,s]vices & ! ,secret>y ( !       
,dep>tm5t ( ,homel& ,security14  7#d7   
,controll$ gr\p & s+le taxpay] rules    
,p>agraph 7#e7 ( section #ejea7;a7 ( !  
,int]nal ,rev5ue ,code ( #aihf1 z am5d$ 
by section #achjb7;d7 ( ,public ,law    
#aae-ig1 is am5d$ by /rik+ p>agraph     
7#a77;,c77i7 ea* place x appe>s & ins]t+
 p>agraph 7#a77;,a77i74  7#e7 ,effective
 date ,! am5dm5ts made by ?is subsection
 %all apply to be] remov$ aft] ,decemb] 
#ca1 #bjag4  7c7 ,transf] ( be] betwe5  
bond$ facilities  7#a7 ,9 g5]al ,section
 #edad ( ! ,int]nal ,rev5ue ,code (     
#aihf1 z am5d$ by section #achjc7;a7 (  
,public ,law #aae-ig1 is am5d$ to read z

 foll[s3  #edad4 ,transf] ( be] betwe5  
bond$ facilities  7a7 ,9 g5]al ,be] may 
be remov$ f "o brew]y to ano!r brew]y1  
)\t paym5t ( tax1 & may be m+l$ ) be] at
 ! receiv+ brew]y1 subject to su*       
conditions1 includ+ paym5t ( ! tax1 & 9 
su* conta9]s1 z ! ,secret>y by          
regulations %all prescribe1 :i* %all    
include--  7#a7 any removal f "o brew]y 
to ano!r brew]y belong+ to ! same brew]1
  7#b7 any removal f a brew]y own$ by "o
 corporation to a brew]y own$ by ano!r  
corporation :5--  7,a7 "o su*           
corporation owns ! controll+ int]e/ 9 ! 
o!r su* corporation1 or  7,b7 !         
controll+ int]e/ 9 ea* su* corporation  
is own$ by ! same p]son or p]sons1 &    
7#c7 any removal f "o brew]y to ano!r   
brew]y :5-- 7,a7 ! proprietors (        
transf]r+ & receiv+ premises are        
indep5d5t ( ea* o!r & nei!r has a       
propriet>y int]e/1 directly or          
indirectly1 9 ! bus9ess ( ! o!r1 &  7,b7
 ! transf]or has dive/$ itself ( all    
int]e/ 9 ! be] s transf]r$ & ! transf]ee

 has accept$ responsibility = paym5t ( !
 tax4  7b7 ,transf] ( liability = tax ,=
 purposes ( subsection 7a77#c71 su*     
relief f liability %all be effective f !
 "t ( removal f ! transf]or's bond$     
premises1 or f ! "t ( dive/m5t ( int]e/1
 :i*ev] is lat]4  4  7#b7 ,effective    
date ,! am5dm5t made by ?is subsection  
%all apply to any cal5d> qu>t]s beg9n+  
aft] ,decemb] #ca1 #bjag4  7d7 ,r$uc$   
rate ( excise tax on c]ta9 w9e  7#a7 ,9 
g5]al ,section #ejda7;c7 ( ! ,int]nal   
,rev5ue ,code ( #aihf1 z am5d$ by       
section #achjd ( ,public ,law #aae-ig1  
is am5d$--  7,a7 9 ! head+1 by /rik+ =  
small dome/ic produc]s1  7,b7 by am5d+  
p>agraph 7#a7 to read z foll[s3  7#a7   
,all[ance ( cr$it  7,a7 ,9 g5]al ,!re   
%all be all[$ z a cr$it aga9/ any tax   
impos$ by ?is title 7o!r ?an *apt]s #b1 
#ba1 & #bb7 an am\nt equal to ! sum (-- 
7i7 #a p] w9e gallon on ! fir/ #cj1jjj  
w9e gallons ( w9e1 plus  7ii7 #ij c5ts  
p] w9e gallon on ! fir/ #ajj1jjj w9e    
gallons ( w9e to :i* clause 7i7 does n  

apply1 plus  7iii7 #ec4e c5ts p] w9e    
gallon on ! fir/ #fbj1jjj w9e gallons ( 
w9e to :i* clauses 7i7 & 7ii7 d n apply1
  :i* are produc$ by ! produc] & remov$ 
dur+ ! cal5d> ye> = consumption or sale1
 or :i* are import$ by ! import] into ! 
,unit$ ,/ates dur+ ! cal5d> ye>4  7,b7  
,adju/m5t ( cr$it = h>d cid] ,9 ! case (
 w9e describ$ 9 subsection 7b77#f71     
subp>agraph 7,a7 ( ?is p>agraph %all be 
appli$--  7i7 9 clause 7i7 ( su*        
subp>agraph1 by sub/itut+ #f4b c5ts =   
#a1  7ii7 9 clause 7ii7 ( su*           
subp>agraph1 by sub/itut+ #e4f c5ts =   
#ij c5ts1 &  7iii7 9 clause 7iii7 ( su* 
subp>agraph1 by sub/itut+ #c4c c5ts =   
#ec4e c5ts4  1  7,c7 by /rik+ p>agraphs 
7#b7 & 7#h71  7,d7 by r$esignat+        
p>agraphs 7#c7 ?r\gh 7#f7 z p>agraphs   
7#b7 ?r\gh 7#e71 respectively1  7,e7 by 
r$esignat+ p>agraph 7#i7 z p>agraph     
7#f71 &  7,f7 by am5d+ p>agraph 7#g7 to 
read z foll[s3  7#g7 ,regulations ,!    
,secret>y may prescribe su* regulations 
z may be necess>y to c>ry out ! purposes

 ( ?is subsection1 includ+ regulations  
to ensure prop] calculation ( ! cr$it   
provid$ 9 ?is subsection4  4  7#b7      
,all[ance ( cr$it = =eign manufactur]s &
 import]s ,subsection 7c7 ( section     
#ejda ( ! ,int]nal ,rev5ue ,code (      
#aihf1 z am5d$ by p>agraph 7#a71 is     
am5d$--  7,a7 9 subp>agraph 7,a7 (      
p>agraph 7#a71 by ins]t+ b only if !    
import] is an elect+ import] "u p>agraph
 7#f7 & ! w9e gallons ( w9e h be5       
assign$ to ! import] pursuant to su*    
p>agraph aft] into ! ,unit$ ,/ates dur+ 
! cal5d> ye>1 &  7,b7 9 p>agraph 7#f7-- 
7i7 9 subp>agraph 7,a71 by /rik+        
p>agraph 7#h7 & ins]t+ p>agraph 7#a71   
7ii7 9 subp>agraph 7,b71 by /rik+ ,!    
,secret>y & ins]t+ ,! ,secret>y ( !     
,treasury1 9 consultation ) ! ,secret>y 
( ,heal? & ,human ,s]vices & ! ,secret>y
 ( ! ,dep>tm5t ( ,homel& ,security11 &  
7iii7 9 subp>agraph 7,c71 by /rik+      
p>agraph 7#d7 & ins]t+ p>agraph 7#c74   
7#c7 ,effective date ,! am5dm5ts made by
 ?is subsection %all apply to w9e remov$

 aft] ,decemb] #ca1 #bjag4  7e7         
,adju/m5t ( alcohol cont5t level =      
application ( excise tax rates  7#a7 ,9 
g5]al ,p>agraphs 7#a7 & 7#b7 ( section  
#ejda7;b7 ( ! ,int]nal ,rev5ue ,code (  
#aihf1 z am5d$ by section #achje (      
,public ,law #aae-ig1 are ea* am5d$ by  
/rik+ #ad p]c5t & all t foll[s ?r\gh    
,janu>y #a1 #bjbj & ins]t+ #af p]c5t4   
7#b7 ,effective date ,! am5dm5ts made by
 ?is subsection %all apply to w9e remov$
 aft] ,decemb] #ca1 #bjag4  7f7         
,def9ition ( mead & l[ alcohol by volume
 w9e  7#a7 ,9 g5]al ,subsection 7h7 (   
section #ejda ( ! ,int]nal ,rev5ue ,code
 ( #aihf1 z add$ by section #achjf (    
,public ,law #aae-ig1 is am5d$--  7,a7 9
 p>agraph 7#b71 by /rik+ ! ,secret>y    
%all ea* place x appe>s & ins]t+ !      
,secret>y may1 &  7,b7 by /rik+ p>agraph
 7#c74  7#b7 ,effective date ,! am5dm5ts
 made by ?is subsection %all apply to   
w9e remov$ aft] ,decemb] #ca1 #bjag4    
7g7 ,r$uc$ rate ( excise tax on c]ta9   
di/ill$ spirits  7#a7 ,9 g5]al          

,subsection 7c7 ( section #ejja ( !     
,int]nal ,rev5ue ,code ( #aihf1 z add$  
by subsection 7a7 ( section #achjg (    
,public ,law #aae-ig & am5d$ by         
subsection 7c7 ( su* section1 is am5d$--
  7,a7 9 ! head+1 by /rik+ = #bjah &    
#bjai1  7,b7 9 p>agraph 7#c77;,b71 by   
/rik+ ,! ,secret>y & ins]t+ ,! ,secret>y
 ( ! ,treasury1 9 consultation ) !      
,secret>y ( ,heal? & ,human ,s]vices & !
 ,secret>y ( ! ,dep>tm5t ( ,homel&      
,security11 &  7,c7 by /rik+ p>agraph   
7#d74  7#b7 ,effective date ,! am5dm5ts 
made by ?is subsection %all apply to    
di/ill$ spirits remov$ aft] ,decemb]    
#ca1 #bjag4  7h7 ,bulk di/ill$ spirits  
7#a7 ,9 g5]al ,section #ebab ( !        
,int]nal ,rev5ue ,code ( #aihf1 z am5d$ 
by section #achjh ( ,public ,law        
#aae-ig1 is am5d$--  7,a7 by /rik+ ! la/
 two s5t5ces1  7,b7 by /rik+ ,bulk      
di/ill$ spirits on :i* & ins]t+ ,di/ill$
 spirits on :i*1 &  7,c7 by /rik+ bulk  
di/ill$ spirits = & ins]t+ di/ill$      
spirits =4  7#b7 ,effective date ,!     

am5dm5ts made by ?is subsection %all    
apply to di/ill$ spirits transf]r$ 9    
bond aft] ,decemb] #ca1 #bjag4  7i7     
,simplification ( rules reg>d+ records1 
/atem5ts1 & returns  7#a7 ,9 g5]al      
,subsection 7a7 ( section #eeee ( !     
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ ,= cal5d> qu>t]s beg9n+ aft] ! 
date ( ! enactm5t ( ?is s5t5ce1 & be=e  
,janu>y #a1 #bjbj1 ! ,secret>y & ins]t+ 
,! ,secret>y4  7#b7 ,effective date ,!  
am5dm5ts made by ?is subsection %all    
apply to any cal5d> qu>t]s beg9n+ aft]  
,febru>y #i1 #bjah4  #c4 ,use ( :olesome
 products suitable = human food         
consumption 9 ! production ( f]m5t$     
bev]ages  7a7 ,9 g5]al ,n lat] ?an !    
date t is #a ye> aft] ! date ( !        
enactm5t ( ?is ,act1 ! ,secret>y ( !    
,treasury or ! ,secret>y ( ! ,treasury's
 delegate %all am5d subp>t ,f ( "p #be (
 sub*apt] ,a ( *apt] ,i ( title #bg1    
,code ( ,f$]al ,regulations1 to ensure  
t1 = purposes ( su* "p1 :olesome fruits1
 vegetables1 & spices suitable = human  

food consumption t are g5]ally recogniz$
 z safe = use 9 an alcoholic bev]age & t
 d n conta9 alcohol are g5]ally         
recogniz$ z a traditional +r$i5t 9 !    
production ( f]m5t$ bev]ages4  7b7      
,def9ition ,= purposes ( ?is section1 ! 
t]m fruit means :ole fruit1 fruit       
juices1 fruit puree1 fruit extract1 or  
fruit conc5trate4  7c7 ,rule (          
con/ruction ,no?+ 9 ?is section %all be 
con/ru$ to revoke1 prescribe1 or limit  
any o!r exemptions f ! =mula requirem5ts
 "u subp>t ,f ( "p #be ( sub*apt] ,a (  
*apt] ,i ( title #bg1 ,code ( ,f$]al    
,regulations1 = any +r$i5t t has be5    
recogniz$ be=e1 on1 or aft] ! date ( !  
enactm5t ( ?is ,act z a traditional     
+r$i5t 9 ! production ( f]m5t$ bev]ages4
  #d4 ,increas$ fund+ = ! ,alcohol &    
,tobacco ,tax & ,trade ,bureau  7a7 ,9  
g5]al ,9 addition to any o!r am\nts     
au?oriz$ to be appropriat$ to ! ,alcohol
 & ,tobacco ,tax & ,trade ,bureau1 !re  
is au?oriz$ to be appropriat$--  7#a7 = 
fiscal ye> #bjai1 #ae1jjj1jjj1 to rema9 

available until ,septemb] #cj1 #bjbj2 & 
7#b7 = fiscal ye> #bjbj1 #ae1jjj1jjj1 to
 rema9 available until ,septemb] #cj1   
#bjba4  7b7 ,availability ( funds ,( !  
am\nts au?oriz$ to be appropriat$ "u    
subsection 7a71 = ea* ( fiscal ye>s     
#bjai & #bjbj--  7#a7 #e1jjj1jjj %all be
 = ! co/s ( accel]at+ ! process+ ( =mula
 & label applications2  7#b7 #e1jjj1jjj 
%all be = ! co/s ( programs to en=ce    
trade practice violations ( ! ,f$]al    
,alcohol ,adm9i/ration ,act 7#bg        
,u4,s4,c4 #bja et seq472 &  7#c7        
#e1jjj1jjj %all be = ! purpose ( c>ry+  
out ! provisions ( ?is ,act & ! am5dm5ts
 made by ?is ,act1 includ+ accel]at+ !  
process+ ( p]mit applications =         
non-indu/rial alcohol production &      
di/ribution4