A bill to amend the Internal Revenue Code of 1954 to clarify the definition of articles produced in Puerto Rico or the Virgin Islands for purposes of determining the amounts of Federal internal revenue taxes which are paid over to Puerto Rico and the Virgin Islands.

Amends the Internal Revenue Code to provide that for purposes of the rebate of the excise tax on distilled spirits for products of Puerto Rico and the Virgin Islands no distilled spirits shall be treated as products of Puerto Rico or the Virgin Islands unless the original distillation of substantially all of the distilled spirits in such product occurred in Puerto Rico or the Virgin Islands.

Requires that a specified value be added to any article (including distilled spirits) in order for it to be treated as produced in Puerto Rico.

Prohibits the rebate of Federal excise taxes on any article if the Secretary of the Treasury determines that an excise tax subsidy was provided by Puerto Rico or the Virgin Islands for such article which is different in kind or amount from that generally offered to industries producing articles not subject to Federal excise taxes.

Exempts rum and any articles consumed in Puerto Rico or the Virgin Islands from the provisions of this Act.