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 a temporary change in the federal tax code that increases the "cover‑over" share of federal excise taxes on distilled spirits paid to Puerto Rico and the U.S. Virgin Islands. The extension moves the expiration date from January 1, 2022 to January 1, 2032 and applies to distilled spirits brought into the United States after December 31, 2021. The change does not alter the federal excise tax rate itself; it continues a temporary allocation rule that directs a larger portion of those tax receipts to the two U.S. territories for roughly an additional ten years.

• Extends the temporary increased cover‑over of federal distilled spirits excise taxes to Puerto Rico and the U.S. Virgin Islands through January 1, 2032.
• Applies to distilled spirits brought into the United States after December 31, 2021.
• Does not change federal excise tax rates on distilled spirits; it changes how revenue is allocated.
• Directly increases predictable revenue for territorial governments in Puerto Rico and the U.S. Virgin Islands.
• No new federal appropriation or new program created; implementation uses existing Treasury processes.
• Minimal administrative burden—Treasury continues current payment procedures.
• Alters distribution of existing federal receipts rather than increasing total federal revenue.
• Likely modest fiscal impact at the federal level but meaningful for territorial budgets.