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119-hr-9407119th CongressWALLET

SPIRIT Act

Sponsored By: Representative Hurd, Jeff [R-CO-3]

Introduced

Summary

Creates a $2.35-per-proof-gallon tax credit that rewards small distillers for using domestic ingredients. The credit would lower the federal excise tax on qualifying U.S. spirits and is aimed at producers that meet size and sourcing tests.

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  • Small distillers: A new credit would reduce the excise tax on qualifying spirits by $2.35 per proof gallon for eligible producers who meet the bill's size and sourcing requirements.
  • Farmers and ingredient suppliers: The credit requires distillers to use mostly U.S. harvested materials, increasing demand for domestic crops by linking the tax benefit to sourcing.
  • Tax and compliance: Controlled groups are treated as one taxpayer for eligibility, and any year a producer loses eligibility triggers a recapture equal to the prior reduction.

*This provision would reduce federal excise tax collected on qualifying spirits by $2.35 per proof gallon.*

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Tax credit for small distillers

This bill would create a Small Distiller Domestic Sourcing Credit. It would reduce the spirits excise tax by $2.35 for each proof gallon produced in the United States. To qualify, a taxpayer would need to produce no more than 100,000 proof gallons in both the taxable year and the prior year. At least 90% of that year's production would have to come from domestically harvested materials. Firms treated as a single employer under tax rules would be treated as one taxpayer for those limits. A taxpayer could certify eligibility during a taxable year if a determination occurs then. If later found ineligible, the taxpayer would owe a recapture tax equal to the reduction. The credit would apply to spirits produced after December 31, 2025.

Sponsors & CoSponsors

Sponsor

Hurd, Jeff [R-CO-3]

CO • R

Cosponsors

  • Rep. Kiggans, Jennifer A. [R-VA-2]

    VA • R

    Sponsored 10/26/2026

  • Rep. Tokuda, Jill N. [D-HI-2]

    HI • D

    Sponsored 6/23/2026

  • Rep. Subramanyam, Suhas [D-VA-10]

    VA • D

    Sponsored 9/3/2026

Roll Call Votes

No roll call votes available for this bill.

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