To amend the Internal Revenue Code of 1986 to repeal the limitation on the cover over of distilled spirits taxes to the Virgin Islands and Puerto Rico.

Bill 118 hr 1028, also known as the "Cover Over Repeal Act," aims to make changes to the Internal Revenue Code of 1986 by repealing the limitation on the cover over of distilled spirits taxes to the Virgin Islands and Puerto Rico. Currently, there is a restriction on the amount of distilled spirits taxes that can be transferred to these territories, but this bill seeks to remove that limitation.

The cover over of taxes refers to the process by which a portion of federal excise taxes collected on distilled spirits is returned to the Virgin Islands and Puerto Rico. By repealing the limitation on this cover over, the territories will receive a greater share of the taxes collected on distilled spirits.

This bill has the potential to benefit the economies of the Virgin Islands and Puerto Rico by providing them with additional revenue from the taxes on distilled spirits. It could also help to support the local industries and businesses that rely on the production and sale of these spirits. Overall, the Cover Over Repeal Act is a straightforward piece of legislation that seeks to remove a limitation on the distribution of taxes collected on distilled spirits to the Virgin Islands and Puerto Rico, potentially providing economic benefits to these territories.