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.

This bill aims to extend the temporary increase in the amount of federal excise taxes on distilled spirits that are transferred, or "covered over," to the treasuries of Puerto Rico and the Virgin Islands. This provision ensures that these U.S. territories receive a larger share of the federal taxes collected on distilled spirits produced within their jurisdictions and subsequently shipped to the United States for consumption. The legislation specifically amends Section 7652(f)(1) of the Internal Revenue Code of 1986, pushing back the expiration date for this increased cover over amount from January 1, 2022, to January 1, 2032 . This extension is designed to provide continued financial stability and support to Puerto Rico and the Virgin Islands. The changes proposed by this bill would apply to distilled spirits brought into the United States after December 31, 2021.