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.

3/13/2025, 4:20 AM

Summary of Bill HR 1378

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.

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Current Status of Bill HR 1378

Bill HR 1378 is currently in the status of Bill Introduced since February 14, 2025. Bill HR 1378 was introduced during Congress 119 and was introduced to the House on February 14, 2025. Bill HR 1378's most recent activity was Referred to the House Committee on Ways and Means. as of February 14, 2025

Bipartisan Support of Bill HR 1378

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Policy Area and Potential Impact of Bill HR 1378

Primary Policy Focus

Alternate Title(s) of Bill HR 1378

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.

Comments

Allyson Gonzalez

724

1 year ago

I'm not sure how I feel about this bill, but it seems like it could have some unintended consequences. It's important to consider all aspects before making a decision. Did you know that this bill also includes provisions for small craft distilleries in Puerto Rico and the Virgin Islands?