H.R. 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.

This section extends the temporary increase in the cover-over of distilled spirits excise taxes to Puerto Rico and the Virgin Islands through January 1, 2032 (from January 1, 2022). As background, under 26 U.S.C. § 7652(f)(1), the U.S. Treasury transfers a portion of federal distilled spirits tax revenues to Puerto Rico and the Virgin Islands based on spirits brought into the United States; the effective date applies the extension to distilled spirits brought into the United States after December 31, 2021.