SPIRIT Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9407 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 9407

   To amend the Internal Revenue Code of 1986 to establish the small
                  distiller domestic sourcing credit.

_______________________________________________________________________

                    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.

    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 ``Supporting Producers through
Incentives from Rural Ingredients and Tax Relief Act'' or the ``SPIRIT
Act''.

SEC. 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:

``SEC. 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.
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