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 keeps a higher share of federal taxes on rum and other distilled spirits flowing back to Puerto Rico and the U.S. Virgin Islands for 10 more years. It changes the end date from January 1, 2022 to January 1, 2032, so the higher amount continues through 2031. It also says the change applies to spirits brought into the United States after December 31, 2021, making it retroactive. This means more steady funding for local services and jobs tied to the rum industry in these territories .

Key points:

• The “cover over” is when the federal government sends certain alcohol tax money back to Puerto Rico and the U.S. Virgin Islands. Extending the higher limit means these places receive more of that money to support their communities and economies .