A bill 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 bill (S 1986) extends a temporary tax rate increase for distilled spirits imports into Puerto Rico and the U.S. Virgin Islands. It amends the tax code to change the expiration date of this provision from January 1, 2022, to January 1, 2032. The change affects businesses importing distilled spirits into these territories, keeping the higher tax rate in place for another decade. The key mechanism is simply extending the existing temporary tax rule, with the new rate applying to spirits brought into the U.S. after December 31, 2021.