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A bill to amend the Internal Revenue Code of 1986 to modify the cover over of certain distilled spirits taxes.
To amend the Internal Revenue Code of 1986 to modify the cover over of certain distilled spirits taxes.
Summary
This bill modifies how federal distilled spirits taxes are distributed to Puerto Rico and the Virgin Islands. It removes a cap that previously limited the amount of rum tax revenue transferred to these territories, allowing larger amounts to flow to Puerto Rico's treasury. The bill requires Puerto Rico to transfer a portion of high-rate rum tax revenue to the Puerto Rico Conservation Trust Fund, which supports conservation and sustainable agriculture in Puerto Rico. These changes apply retroactively to distilled spirits brought into the United States after December 31, 2021.
AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.
Sponsor (1)
- Sen. Cassidy, Bill [R-LA] (R-LA)
4 cosponsors
Money behind the sponsor
Top reported contributors to Bill Cassidy’s campaign committee (2024 cycle) — who funds the bill’s sponsor, not a claim about this bill. Data from FEC.
- ANDREESSEN HOROWITZ $59,100
- GENERAL ATLANTIC $37,700
- WELSH CARSON ANDERSON & STOWE $33,870
- OCHSNER HEALTH SYSTEM $33,250
- RA CAPITAL MANAGEMENT $30,200
Organizations whose employees gave the most — itemized individual contributions grouped by the donor’s reported employer (FEC Schedule A). Full finance for Bill Cassidy → · Outside spending →
Actions (2)
- Jun 4, 2025 Read twice and referred to the Committee on Finance. · senate
- Jun 4, 2025 Introduced in Senate
Similar bills (6)
Bills with similar text or summary — includes reintroductions across Congresses. Ranked by semantic similarity of the bill text (computed locally); a neutral discovery aid, not a claim the bills are duplicates.
Full text
IN THE SENATE OF THE UNITED STATES
June 4, 2025
Mr. Cassidy (for himself, Mrs. Gillibrand, Mr. Wicker, and Mr. Lujan) introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to modify the cover over of certain distilled spirits taxes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. COVER OVER OF CERTAIN DISTILLED SPIRITS TAXES.
(a) Repeal of Limitation on Cover Over of Distilled Spirits Taxes to Puerto Rico and Virgin Islands.—
(1) In general.—Section 7652 of the Internal Revenue Code of 1986 is amended by striking subsection (f).
(2) Conforming amendment.—Section 7652(g)(1) of such Code is amended—
(A) by striking subparagraph (B), and
(B) by striking “as if—” and all that follows through “the use and tax” and inserting “as if the use and tax”.
(3) Effective date.—The amendments made by this subsection shall apply to articles brought into the United States after December 31, 2021.
(b) Required Transfer to Puerto Rico Conservation Trust Fund of Portion of Puerto Rico Rum Cover Over.—
(1) In general.—Section 7652(a) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
“(4) Required transfer to puerto rico conservation trust fund of portion of rum taxes covered over.—
“(A) In general.—From any taxes collected on rum transported to the United States that are covered into the treasury of Puerto Rico under paragraph (3) at a rate equal to or greater than $10.50 per proof gallon, Puerto Rico shall transfer to the Puerto Rico Conservation Trust Fund an amount per proof gallon equal to or greater than \1/6\ of the difference between $10.50 and the rate, not to exceed $13.25, at which such taxes are covered into such treasury. Puerto Rico’s obligations under this paragraph shall not modify or impair payment priorities established under Puerto Rico law and in effect on December 31, 2022 .
“(B) Puerto rico conservation trust fund.—For purposes of this section, the term ‘Puerto Rico Conservation Trust Fund’ means the fund which—
“(i) was established pursuant to a Memorandum of Understanding between the United States Department of the Interior and the Commonwealth of Puerto Rico, dated December 24, 1968, and
“(ii) provides for the conservation of natural areas in Puerto Rico, including through sustainable agriculture efforts and the reforestation and restoration of Puerto Rico’s natural habitats.”.
(2) Cover over determined without regard to certain rate reductions.—Section 7652(i) of such Code, as amended by subsection (c), is amended by inserting “(a)(4),” after
“(a)(3),”.
(3) Effective date.—The amendments made by this subsection shall apply to distilled spirits brought into the United States after December 31, 2021.
(c) Retroactive Application of Rules Relating to Determination of Cover Over.—Notwithstanding section 107(a)(3) of division EE of Public Law 116-260—
(1) the amendments made by section 107(a)(2)(A) thereof shall take effect as if included in section 13807 of Public Law 115-97, and
(2) the amendments made by section 107(a)(2)(B) thereof shall take effect as if included in section 41102 of Public Law 115-123. <all>
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