Domestic Spirits Tax Equity Act of 2003 - Amends the Internal Revenue Code to establish a credit for wholesalers of distilled spirits for the financing costs of the federal excise tax on such spirits.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1506 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 1506
To amend the Internal Revenue Code of 1986 to allow distilled spirits
wholesalers a credit against income tax for their cost of carrying
Federal excise taxes prior to the sale of the product bearing the tax.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 31 (legislative day, July 21), 2003
Mr. Bunning (for himself, Mr. Breaux, and Mr. Bond) 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 allow distilled spirits
wholesalers a credit against income tax for their cost of carrying
Federal excise taxes prior to the sale of the product bearing the tax.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Domestic Spirits Tax Equity Act of
2003''.
SEC. 2. INCOME TAX CREDIT FOR DISTILLED SPIRITS WHOLESALERS AND FOR
DISTILLED SPIRITS IN CONTROL STATE BAILMENT WAREHOUSES
FOR COSTS OF CARRYING FEDERAL EXCISE TAXES ON BOTTLED
DISTILLED SPIRITS.
(a) In General.--Subpart A of part I of subchapter A of chapter 51
of the Internal Revenue Code of 1986 (relating to gallonage and
occupational taxes) is amended by adding at the end the following new
section:
``SEC. 5011. INCOME TAX CREDIT FOR AVERAGE COST OF CARRYING EXCISE TAX.
``(a) In General.--For purposes of section 38, the amount of the
distilled spirits credit for any taxable year is the amount equal to
the product of--
``(1) in the case of--
``(A) any eligible wholesaler--
``(i) the number of cases of bottled
distilled spirits--
``(I) which were bottled in the
United States, and
``(II) which are purchased by such
wholesaler during the taxable year
directly from the bottler of such
spirits, or
``(B) any person which is subject to section 5005
and which is not an eligible wholesaler, the number of
cases of bottled distilled spirits which are stored in
a warehouse operated by, or on behalf of, a State, or
agency or political subdivision thereof, on which title
has not passed on an unconditional sale basis, and
``(2) the average tax-financing cost per case for the most
recent calendar year ending before the beginning of such
taxable year.
``(b) Eligible Wholesaler.--For purposes of this section, the term
`eligible wholesaler' means any person which holds a permit under the
Federal Alcohol Administration Act as a wholesaler of distilled spirits
which is not a State, or agency or political subdivision thereof.
``(c) Average Tax-Financing Cost.--
``(1) In general.--For purposes of this section, the
average tax-financing cost per case for any calendar year is
the amount of interest which would accrue at the deemed
financing rate during a 60-day period on an amount equal to the
deemed Federal excise tax per case.
``(2) Deemed financing rate.--For purposes of paragraph
(1), the deemed financing rate for any calendar year is the
average of the corporate overpayment rates under paragraph (1)
of section 6621(a) (determined without regard to the last
sentence of such paragraph) for calendar quarters of such year.
``(3) Deemed federal excise tax per case.--For purposes of
paragraph (1), the deemed Federal excise tax per case is
$25.68.
``(d) Other Definitions and Special Rules.--For purposes of this
section--
``(1) Case.--The term `case' means 12 80-proof 750
milliliter bottles.
``(2) Number of cases in lot.--The number of cases in any
lot of distilled spirits shall be determined by dividing the
number of liters in such lot by 9.''.
(b) Conforming Amendments.--
(1) Subsection (b) of section 38 of the Internal Revenue
Code of 1986 is amended by striking ``plus'' at the end of
paragraph (14), by striking the period at the end of paragraph
(15) and inserting ``, plus'', and by adding at the end the
following new paragraph:
``(16) the distilled spirits credit determined under
section 5011(a).''.
(2) Subsection (d) of section 39 of such Code (relating to
carryback and carryforward of unused credits) is amended by
adding at the end the following new paragraph:
``(11) No carryback of section 5011 credit before january
1, 2003.--No portion of the unused business credit for any
taxable year which is attributable to the credit determined
under section 5011(a) may be carried back to a taxable year
beginning before the date of the enactment of this
paragraph.''.
(3) The table of sections for subpart A of part I of
subchapter A of chapter 51 of such Code is amended by adding at
the end the following new item:
``Sec. 5011. Income tax credit for
average cost of carrying excise
tax.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S10621)
Read twice and referred to the Committee on Finance.
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