S. 429

AGED Spirits Act

Latest

II

115th CONGRESS

1st Session

S. 429

IN THE SENATE OF THE UNITED STATES

February 16, 2017

Mr. McConnell (for himself and Mr. Paul) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To exempt the aging process of distilled spirits from the production period for purposes of capitalization of interest costs.

1.

Short title

This Act may be cited as the Advancing Growth in the Economy through Distilled Spirits Act or the AGED Spirits Act.

2.

Production period of distilled spirits

(a)

In general

Section 263A(f) of the Internal Revenue Code of 1986 is amended—

(1)

by redesignating paragraph (4) as paragraph (5), and

(2)

by inserting after paragraph (3) the following new paragraph:

(4)

Exemption for aging process of distilled spirits

For purposes of this subsection, the production period shall not include the aging period for distilled spirits (as described in section 5002(a)(8)), except such spirits that are unfit for use for beverage purposes.

.

(b)

Conforming amendment

Paragraph (5)(B)(ii) of section 263A(f) of the Internal Revenue Code of 1986, 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 incurred in taxable years ending on or after December 31, 2018.