What does Preamble of SPIRIT Act do?

This bill proposes to amend the Internal Revenue Code of 1986. The stated purpose of the bill is to establish the small distiller domestic sourcing credit.

What does SHORT TITLE. of SPIRIT Act do?

This bill is formally titled the Supporting Producers through Incentives from Rural Ingredients and Tax Relief Act, also known as the SPIRIT Act.

What does SMALL DISTILLER DOMESTIC SOURCING CREDIT. of SPIRIT Act do?

This section amends the Internal Revenue Code of 1986 to establish a small distiller domestic sourcing credit. Eligible distillers receive a reduction of $2.35 per proof gallon on the tax imposed on distilled spirits produced in the United States. To be an eligible distiller, a taxpayer must produce no more than 100,000 proof gallons during each of two consecutive taxable years and derive at least 90 percent of their proof gallons from domestically harvested materials. Controlled groups are treated as a single taxpayer for eligibility purposes. Taxpayers can certify their eligibility for the credit. If a taxpayer is not an eligible distiller but receives a reduction, a recapture tax is imposed equal to the reduction amount. The amendments apply to spirits produced after December 31, 2025.

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SPIRIT Act

Last updated: 6/23/2026 · Introduced: 6/23/2026

Author: Jeff Hurd (R-CO)

TL;DR (AI)

The bill creates a tax credit of $2.35 per proof gallon for small distillers who produce spirits in the United States.
To qualify, distillers must produce no more than 100,000 proof gallons annually and source at least 90% of their ingredients from domestic materials.
The credit applies to spirits produced after December 31, 2025, and a recapture tax is imposed if the credit is incorrectly claimed.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

3 sections

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