[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3208 Introduced in Senate (IS)]
111th CONGRESS
2d Session
S. 3208
To amend the Internal Revenue Code of 1986 to provide a special rule
for allocating the cover over of distilled spirits taxes between Puerto
Rico and the Virgin Islands.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 15, 2010
Mr. Menendez (for himself, Mr. Cochran, Mr. Nelson of Florida, Mr.
LeMieux, and Mr. Kaufman) introduced the following bill; which was read
twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide a special rule
for allocating the cover over of distilled spirits taxes between Puerto
Rico and the Virgin Islands.
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 ``Reinvesting in U.S. Territories, Not
Corporations Act''.
SEC. 2. SPECIAL RULE FOR ALLOCATING DISTILLED SPIRITS TAXES BETWEEN
PUERTO RICO AND THE VIRGIN ISLANDS.
(a) In General.--Section 7652 of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(i) Reduction of Cover Over for Unreasonable and Excessive Rum
Subsidies.--
``(1) In general.--For purposes of this section, with
respect to taxes imposed under section 5001 or this section on
distilled spirits, the amount covered into the treasury of any
covered government (after the application of subsection (f)) in
any calendar year shall be reduced (but not below zero) by the
sum of--
``(A) the amount of any unreasonable and excessive
rum subsidy paid or incurred by such government in the
preceding calendar year, and
``(B) the amount of any unreasonable and excessive
rum subsidy paid or incurred by such government for any
calendar year preceding such preceding calendar year
which has not been taken into account to reduce the
amount so covered for any preceding calendar year.
``(2) Unreasonable and excessive rum subsidy.--
``(A) In general.--For any calendar year, the
unreasonable and excessive rum subsidy paid by any
covered government during such calendar year is the
amount of the excess, if any, of--
``(i) the aggregate amount of direct and
indirect government assistance paid or incurred
in such calendar year by such government to all
persons that produce distilled spirits in the
geographical area governed by such government
for consumption or sale in such geographical
area or in the United States, over
``(ii) the amount that is 10 percent of the
amounts which would (but for this subsection)
be covered into the treasury of such government
under subsection (a)(3) or (b)(3), whichever is
applicable, in such calendar year (without
regard to amounts covered into such treasury
under subsection (e)).
``(B) Direct government assistance.--For purposes
of subparagraph (A)(i), direct government assistance
includes any transfer of funds, grant, loan, equity
investment, loan guarantee, production or marketing
incentive, income or price support, provision of goods
or services other than generally available
infrastructure and public services, and such other
assistance provided by a covered government as the
Secretary identifies as consistent with the purposes of
this subsection.
``(C) Indirect government assistance.--For purposes
of subparagraph (A)(i), indirect government assistance
includes any amounts expended by a covered government
to promote, market, or otherwise support the rum
industry in the geographical area governed by such
government, to pay interest on, and expenses related
to, indebtedness incurred, the proceeds of which are
used to provide rum subsidies, and for any other
purpose identified by the Secretary as consistent with
the purposes of this subsection.
``(3) Covered government.--For purposes of this subsection,
the term `covered government' means the government of Puerto
Rico and the government of the Virgin Islands.
``(4) Regulations.--The Secretary may prescribe regulations
and guidance as necessary or appropriate to carry out the
purposes of this subsection, including regulations requiring
annual reports to be submitted by covered governments reporting
the amount of direct and indirect government assistance
provided to persons that produce distilled spirits, the
monetary value of such assistance, and any other information as
required by the Secretary.''.
(b) Effective Date.--The amendment made by this section shall apply
to deposits made under subsection (a)(3) or (b)(3) of section 7652 of
the Internal Revenue Code of 1986 for calendar years beginning after
December 31, 2009.
<all>