H.R. 1378

In brief

This bill extends a temporary increase in the tax revenue returned from the federal government to the treasuries of Puerto Rico and the Virgin Islands. These payments, known as "cover overs," consist of excise taxes collected on distilled spirits produced in the territories and imported into the United States. By amending the Internal Revenue Code of 1986, the legislation maintains the transfer rate at $13.25 per proof gallon rather than allowing it to revert to the lower permanent rate of $10.50. Introduced by Representative Ron Estes (R-KS), the bill is currently awaiting consideration by the House Committee on Ways and Means.