A bill to amend the Internal Revenue Code of 1986 to modify the cover over of certain distilled spirits taxes.

This bill modifies U.S. tax rules for distilled spirits, primarily affecting Puerto Rico's rum industry. It repeals a rule limiting certain tax coverage (where taxes collected in Puerto Rico are applied to U.S. Treasury) to only Puerto Rico and the Virgin Islands, making the rule apply more broadly. Crucially, it requires Puerto Rico to transfer a portion of rum tax revenue (1/6 of the difference between $10.50 and the actual tax rate, up to $13.25 per proof gallon) to the Puerto Rico Conservation Trust Fund, which supports natural habitat conservation and sustainable agriculture. The changes apply to rum brought into the U.S. after December 31, 2021.