S.1938

Amends the Internal Revenue Code to modify the cover over of certain distilled spirits taxes.

The bill amends the Internal Revenue Code of 1986 to modify the cover over of certain distilled spirits taxes. It repeals the limitation on the cover over of distilled spirits taxes to Puerto Rico and the Virgin Islands. It also mandates that Puerto Rico transfer a portion of rum taxes covered over to the Puerto Rico Conservation Trust Fund. The transfer amount is based on the difference between the tax rate and a specified threshold, not exceeding a set amount. The bill applies to distilled spirits brought into the United States after December 31, 2021.