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131 STAT. 2170 PUBLIC LAW 115–97—DEC. 22, 2017 (2) by inserting after paragraph (3) the following new para- graph: ‘‘(4) EXEMPTION FOR AGING PROCESS OF BEER, WINE, AND DISTILLED SPIRITS.— ‘‘(A) IN GENERAL.—For purposes of this subsection, the production period shall not include the aging period for— ‘‘(i) beer (as defined in section 5052(a)), ‘‘(ii) wine (as described in section 5041(a)), or ‘‘(iii) distilled spirits (as defined in section 5002(a)(8)), except such spirits that are unfit for use for beverage purposes. ‘‘(B) TERMINATION.—This paragraph shall not apply to interest costs paid or accrued after December 31, 2019.’’. (b) CONFORMING AMENDMENT.—Paragraph (5)(B)(ii) of section 263A(f), as redesignated by this section, is amended by inserting ‘‘except as provided in paragraph (4),’’ before ‘‘ending on the date’’. (c) EFFECTIVE DATE.—The amendments made by this section shall apply to interest costs paid or accrued in calendar years beginning after December 31, 2017. SEC. 13802. REDUCED RATE OF EXCISE TAX ON BEER. (a) IN GENERAL.—Paragraph (1) of section 5051(a) is amended to read as follows: ‘‘(1) IN GENERAL.— ‘‘(A) IMPOSITION OF TAX.—A tax is hereby imposed on all beer brewed or produced, and removed for consumption or sale, within the United States, or imported into the United States. Except as provided in paragraph (2), the rate of such tax shall be the amount determined under this paragraph. ‘‘(B) RATE.—Except as provided in subparagraph (C), the rate of tax shall be $18 for per barrel. ‘‘(C) SPECIAL RULE.—In the case of beer removed after December 31, 2017, and before January 1, 2020, the rate of tax shall be— ‘‘(i) $16 on the first 6,000,000 barrels of beer— ‘‘(I) brewed by the brewer and removed during the calendar year for consumption or sale, or ‘‘(II) imported by the importer into the United States during the calendar year, and ‘‘(ii) $18 on any barrels of beer to which clause (i) does not apply. ‘‘(D) BARREL.—For purposes of this section, a barrel shall contain not more than 31 gallons of beer, and any tax imposed under this section shall be applied at a like rate for any other quantity or for fractional parts of a barrel.’’. (b) REDUCED RATE FOR CERTAIN DOMESTIC PRODUCTION.— Subparagraph (A) of section 5051(a)(2) is amended— (1) in the heading, by striking ‘‘$7 A BARREL’’, and (2) by inserting ‘‘($3.50 in the case of beer removed after December 31, 2017, and before January 1, 2020)’’ after ‘‘$7’’. (c) APPLICATION OF REDUCED TAX RATE FOR FOREIGN MANUFAC- TURERS AND IMPORTERS.—Subsection (a) of section 5051 is amended— (1) in subparagraph (C)(i)(II) of paragraph (1), as amended by subsection (a), by inserting ‘‘but only if the importer is 26 USC 263A note. 26 USC 263A. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00118 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS