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Bill

HR 1378

To amend the Internal Revenue Code of 1986 to extend the temporary increase in limitation on the cover over of distilled spirits taxes to Puerto Rico and the Virgin Islands.

119th Congress Introduced by Andy Barr and 25 co-sponsors

HR 1378 extends the cover over of distilled spirits taxes to Puerto Rico and the Virgin Islands until 2032, boosting their financial resources for economic growth.

Introduced in House
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WeVote Research Nonpartisan
Bill Summary · HR 1378

Summary of HR 1378: Extension of Distilled Spirits Tax Cover Over

Bill Overview

Bill Number: HR 1378
Title: To amend the Internal Revenue Code of 1986 to extend the temporary increase in limitation on the cover over of distilled spirits taxes to Puerto Rico and the Virgin Islands.
Status: Introduced in House
Introduced On: February 14, 2025
Classification: Bill

Purpose and Intent

The primary purpose of HR 1378 is to extend the temporary increase in the limitation on the cover over of distilled spirits taxes to Puerto Rico and the Virgin Islands. This amendment aims to provide continued financial support to these territories by allowing them to receive a larger share of the federal excise taxes collected on distilled spirits.

Key Provisions

  • Amendment to the Internal Revenue Code:
    • The bill proposes to amend Section 7652(f)(1) of the Internal Revenue Code of 1986.
    • It changes the expiration date for the increased limitation on the cover over from January 1, 2022, to January 1, 2032.
    • The amendments will apply to distilled spirits brought into the United States after December 31, 2021.

Impact

  • Affected Parties:

    • The bill primarily affects the governments of Puerto Rico and the Virgin Islands, which will benefit from the extended cover over of distilled spirits taxes.
    • Distilled spirits producers and importers may also be impacted as the tax structure changes.

  • Financial Implications:

    • By extending the cover over, the bill is expected to enhance the financial resources available to Puerto Rico and the Virgin Islands, potentially aiding in economic recovery and development initiatives.

Legislative Process

  • Introduced and Referred:
    • The bill was introduced in the House and referred to the House Committee on Ways and Means on the same day, February 14, 2025.

Sponsorship

HR 1378 is sponsored by:
- Primary Sponsor: Ron Estes
- Cosponsors: A diverse group of representatives, including Gwen Moore, Michael Lawler, Pablo José Hernández, and others, totaling 25 cosponsors from various states.

Related Legislation

  • Companion Bill: S 1986, which is likely to mirror the provisions of HR 1378 in the Senate.

This summary provides a clear understanding of HR 1378, its objectives, and its potential impact on the territories of Puerto Rico and the Virgin Islands.

Compiled from official sources — confirm details with the bill’s official record.

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