H.R. 9407

[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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