S.Amdt. 638

1. Adds SEC. ____. INCOME TAX CREDIT TO DISTILLED SPIRITS WHOLESALERS FOR COST OF CARRYING FEDERAL EXCISE TAXES ON BOTTLED DISTILLED SPIRITS wherever appropriate

   Adds a section

   Inserted: SEC. ____. INCOME TAX CREDIT TO DISTILLED SPIRITS WHOLESALERS FOR COST OF CARRYING FEDERAL EXCISE TAXES ON BOTTLED DISTILLED SPIRITS.

   Inserted: (a) In General.--Subpart A of part I of subchapter A of chapter 51 of the Internal Revenue Code of 1986 (relating to gallonage and occupational taxes) is amended by adding at the end the following new section:

   Inserted: "SEC. 5011. INCOME TAX CREDIT FOR WHOLESALER'S AVERAGE COST OF CARRYING EXCISE TAX.

   Inserted: "(a) In General.--For purposes of section 38, in the case of an eligible wholesaler, the amount of the distilled spirits wholesalers credit for any taxable year is the amount equal to the product of--

   Inserted: "(1) the number of cases of bottled distilled spirits--

   Inserted: "(A) which were bottled in the United States, and

   Inserted: "(B) which are purchased by such wholesaler during the taxable year directly from the bottler of such spirits, and

   Inserted: "(2) the average tax-financing cost per case for the most recent calendar year ending before the beginning of such taxable year.

   Inserted: "(b) Eligible Wholesaler.--For purposes of this section, the term 'eligible wholesaler' means any person who holds--

   Inserted: "(1) a permit under the Federal Alcohol Administration Act as a wholesaler of distilled spirits, or

   Inserted: "(2) a basic permit under such Act as a distiller, rectifier, blender or warehouser and bottler of distilled spirits and acts as a wholesaler selling distilled spirits to a State agency.

   Inserted: "(c) Average Tax-Financing Cost.--

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   Inserted: "(1) In general.--For purposes of this section, the average tax-financing cost per case for any calendar year is the amount of interest which would accrue at the deemed financing rate during a 60-day period on an amount equal to the deemed Federal excise per case.

   Inserted: "(2) Deemed financing rate.--For purposes of paragraph (1), the deemed financing rate for any calendar year is the average of the corporate overpayment rates under paragraph (1) of section 6621(a) (determined without regard to the last sentence of such paragraph) for calendar quarters of such year.

   Inserted: "(3) Deemed federal excise tax based on case of 12 80-proof 750ml bottles.--For purposes of paragraph (1), the deemed Federal excise tax per case is $25.68.

   Inserted: "(4) Number of cases in lot.--For purposes of this section, the number of cases in any lot of distilled spirits shall be determined by dividing the number of liters in such lot by 9.".

   Inserted: (b) Conforming Amendments.--

   Inserted: (1) Subsection (b) of section 38 of the Internal Revenue Code of 1986 is amended by striking "plus" at the end of paragraph (14), by striking the period at the end of paragraph (15) and inserting ", plus", and by adding at the end the following new paragraph:

   Inserted: "(16) in the case of an eligible wholesaler (as defined in section 5011(b)), the distilled spirits wholesaler credit determined under section 5011(a).".

   Inserted: (2) Subsection (d) of section 39 of such Code (relating to carryback and carryforward of unused credits) is amended by adding at the end the following new paragraph:

   Inserted: "(11) No carryback of section 5011 credit before january 1, 2003.--No portion of the unused business credit for any taxable year which is attributable to the credit determined under section 5011(a) may be carried back to a taxable year beginning before January 1, 2003.".

   Inserted: (3) The table of sections for subpart A of part I of subchapter A of chapter 51 of such Code is amended by adding at the end the following new item:

   Inserted: "Sec. 5011. Income tax credit for wholesaler's average cost of carrying excise tax.".

   Inserted: (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2002.

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   Original wording

   At the appropriate place insert the following:

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As printed