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.

Summary

Extends the temporary increased “cover-over” treatment of federal distilled spirits excise taxes for Puerto Rico and the U.S. Virgin Islands through January 1, 2032. The change applies to distilled spirits brought into the United States after December 31, 2021, keeping the territories eligible for the extended transfers for an additional decade.

• Replaces expiration date "January 1, 2022" with "January 1, 2032" for the temporary increased cover-over period for distilled spirits taxes.
• Applies to distilled spirits brought into the United States after December 31, 2021.
• Extends an existing tax-code timing provision that affects transfers to Puerto Rico and the U.S. Virgin Islands for an additional decade.
• Does not create new federal programs or appropriate new funds; it modifies distribution timing of existing excise tax receipts.
• Primarily affects territorial governments and local economies tied to distilled spirits production and related businesses.
• Administrative effect on tax collection and transfers rather than on substantive tax rates or rules.
• Narrow, targeted change to a single subsection of the Internal Revenue Code.
• Likely increases predictable revenue flows to territorial governments through 2031.
• No unfunded mandates, emergency spending, or national security provisions included.