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.

# HR 1378 Summary **What the Bill Does** This bill would extend a temporary tax benefit for rum producers in Puerto Rico and the U.S. Virgin Islands. Currently, the federal government collects excise taxes on distilled spirits (like rum) produced in these territories and returns a portion of that money back to the local governments—a practice called a "cover over." The bill would extend an increased amount of these tax returns for a longer period than currently scheduled. **Who It Affects** The bill primarily benefits the rum industry and governments in Puerto Rico and the U.S. Virgin Islands, which depend on these tax revenues to fund local operations.

It could also indirectly affect consumers of rum products and U.S. companies that source rum from these territories. **Current Status** The bill was introduced by Representative Ron Estes (R-KS) in the 119th Congress and is currently in committee, meaning it hasn't yet been debated or voted on by the full House of Representatives. The bill remains in the early stages of the legislative process.