Bill 119 HR 1378, also known as the "Cover Over Extension Act of 2021," aims 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. The cover over provision allows for a portion of the excise tax collected on distilled spirits produced in the United States to be returned to the producing territory or possession. This provision was originally set to expire on December 31, 2021, but this bill seeks to extend it indefinitely. By extending this provision to Puerto Rico and the Virgin Islands, the territories will continue to receive a portion of the excise tax collected on distilled spirits produced in their respective regions. This will provide additional revenue to support economic development and infrastructure projects in these territories. Overall, Bill 119 HR 1378 aims to support the economic growth and development of Puerto Rico and the Virgin Islands by extending the cover over provision for distilled spirits taxes.
Bill 119 HR 1378, also known as the "Cover Over Extension Act of 2021," aims 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 Ric...