SPIRIT Act

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 9407 Introduced in House (IH)]

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119th CONGRESS 2d Session H. R. 9407

To amend the Internal Revenue Code of 1986 to establish the small distiller domestic sourcing credit.

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IN THE HOUSE OF REPRESENTATIVES

June 23, 2026

Mr. Hurd of Colorado (for himself and Ms. Tokuda) introduced the following bill; which was referred to the Committee on Ways and Means

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A BILL

To amend the Internal Revenue Code of 1986 to establish the small distiller domestic sourcing credit.

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 ``Supporting Producers through Incentives from Rural Ingredients and Tax Relief Act'' or the ``SPIRIT Act''.

SEC. 2. SMALL DISTILLER DOMESTIC SOURCING CREDIT.

(a) In General.--Subpart A of part I of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

``SEC. 5012. SMALL DISTILLER DOMESTIC SOURCING CREDIT.

``(a) In General.--In the case of an eligible distiller, the amount of the tax imposed under section 5001(a)(1) on distilled spirits produced in the United States shall be reduced by $2.35 per proof gallon. ``(b) Eligible Distiller.--For purposes of this section-- ``(1) In general.--The term `eligible distiller' means, with respect to a taxable year, a taxpayer-- ``(A) that produced not more than 100,000 proof gallons during each of such taxable year and the preceding taxable year, and ``(B) that produced not less than 90 percent of the proof gallons produced by such taxpayer during the taxable year are derived from domestically harvested materials. ``(2) Controlled group.--For purposes of paragraph (1), all persons which are treated as a single employer under subsections (a) and (b) of section 52 shall be treated as a single taxpayer. ``(3) Certification.--In the case of a determination under subsection (a) which occurs during a taxable year, a taxpayer may certify that such taxpayer is an eligible distiller for such taxable year. ``(c) Recapture.--In the case of any taxpayer which is not an eligible distiller with respect to which a reduction is determined under subsection (a) during any taxable year, there is imposed a tax in an amount equal to the reduction so determined for such taxable year.''. (b) Clerical Amendment.--The table of sections for subpart A of part I of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:

``Sec. 5012. Small distiller domestic sourcing credit.''. (c) Effective Date.--The amendments made by this section shall apply to spirits produced after December 31, 2025. <all>