H.R. 9407

119 HR 9407 IH: Supporting Producers through Incentives from Rural Ingredients and Tax Relief Act
 U.S. House of Representatives
 2026-06-23
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 I  119th CONGRESS  2d Session  H. R. 9407  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    A BILL
To amend the Internal Revenue Code of 1986 to establish the small distiller domestic sourcing credit.
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  .
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:
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.