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131 STAT. 2176 PUBLIC LAW 115–97—DEC. 22, 2017 SEC. 13807. REDUCED RATE OF EXCISE TAX ON CERTAIN DISTILLED SPIRITS. (a) IN GENERAL.—Section 5001 is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: ‘‘(c) REDUCED RATE FOR 2018 AND 2019.— ‘‘(1) IN GENERAL.—In the case of a distilled spirits oper- ation, the otherwise applicable tax rate under subsection (a)(1) shall be— ‘‘(A) $2.70 per proof gallon on the first 100,000 proof gallons of distilled spirits, and ‘‘(B) $13.34 per proof gallon on the first 22,130,000 of proof gallons of distilled spirits to which subparagraph (A) does not apply, which have been distilled or processed by such operation and removed during the calendar year for consumption or sale, or which have been imported by the importer into the United States during the calendar year. ‘‘(2) CONTROLLED GROUPS.— ‘‘(A) IN GENERAL.—In the case of a controlled group, the proof gallon quantities specified under subparagraphs (A) and (B) of paragraph (1) shall be applied to such group and apportioned among the members of such group in such manner as the Secretary or their delegate shall by regulations prescribe. ‘‘(B) DEFINITION.—For purposes of subparagraph (A), the term ‘controlled group’ shall have the meaning given such term by subsection (a) of section 1563, except that ‘more than 50 percent’ shall be substituted for ‘at least 80 percent’ each place it appears in such subsection. ‘‘(C) RULES FOR NON-CORPORATIONS.—Under regula- tions prescribed by the Secretary, principles similar to the principles of subparagraphs (A) and (B) shall be applied to a group under common control where one or more of the persons is not a corporation. ‘‘(D) SINGLE TAXPAYER.—Pursuant to rules issued by the Secretary, two or more entities (whether or not under common control) that produce distilled spirits marketed under a similar brand, license, franchise, or other arrange- ment shall be treated as a single taxpayer for purposes of the application of this subsection. ‘‘(3) TERMINATION.—This subsection shall not apply to dis- tilled spirits removed after December 31, 2019.’’. (b) CONFORMING AMENDMENT.—Section 7652(f)(2) is amended by striking ‘‘section 5001(a)(1)’’ and inserting ‘‘subsection (a)(1) of section 5001, determined as if subsection (c)(1) of such section did not apply’’. (c) APPLICATION OF REDUCED TAX RATE FOR FOREIGN MANUFAC- TURERS AND IMPORTERS.—Subsection (c) of section 5001, as added by subsection (a), is amended— (1) in paragraph (1), by inserting ‘‘but only if the importer is an electing importer under paragraph (3) and the proof gallons of distilled spirits have been assigned to the importer pursuant to such paragraph’’ after ‘‘into the United States during the calendar year’’, and (2) by redesignating paragraph (3) as paragraph (4) and by inserting after paragraph (2) the following new paragraph: 26 USC 5001. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00124 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS