Bills · S 1938
IN COMMITTEE· 119TH CONGRESS
Senate BillS 1938Taxation
A bill to amend the Internal Revenue Code of 1986 to modify the cover over of certain distilled spirits taxes.
INTRO JUN 4· LAST ACTION JUN 4
READING
3MIN
COSPONSORS
4BIPARTISAN
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it could significantly increase the amount of tax revenue flowing to Puerto Rico and the U.S. Virgin Islands from rum and other distilled spirits. For Puerto Rico, this means more funds for government services, and specifically, a dedicated stream of money for environmental conservation, including reforestation and sustainable agriculture. Removing the cap ensures that these territories receive the full amount of collected taxes, which helps stabilize their economies.
If this bill becomes law, it provides more financial autonomy and resources to these territories, potentially boosting their local economies and funding important environmental projects. If it doesn't pass, the previous cap would remain, limiting the revenue these territories receive and preventing the mandated conservation funding in Puerto Rico.
KEY PROVISIONS
3AI-extractedPROVISION 01
Removes the $10.50 per proof gallon limit on distilled spirits taxes that are transferred (covered over) to Puerto Rico and the U.S. Virgin Islands.
This allows more tax revenue collected by the U.S. government on these products to flow back to the territories' treasuries.
PROVISION 02
Requires Puerto Rico to transfer a specific portion of the covered-over rum taxes (from amounts above $10.50 up to $13.25 per proof gallon) to the Puerto Rico Conservation Trust Fund.
This earmarks funds specifically for environmental protection, sustainable agriculture, and habitat restoration in Puerto Rico.
PROVISION 03
Applies the changes, including the removal of the cap and the new conservation fund requirement, retroactively to distilled spirits brought into the U.S. after December 31, 2021.
This means the territories could receive backdated funds and the conservation transfer would also apply to past periods.
SPONSORSHIP
1 + 4
R· Louisiana
YRS IN OFFICE
17
BILLS LED
121
COSPONSOR BREAKDOWNBIPARTISAN · 100%
DEM 2 REP 2 IND 0
ACTION TIMELINE
2 EVENTSJUN 4
Introduced in Senate
JUN 4
Read twice and referred to the Committee on Finance.
BILL INFO
TypeSenate Bill
NumberS 1938
Congress119th
StatusIn Committee
IntroducedJun 4, 2025
Last actionJun 4, 2025
READER REACTIONS
OVERALL SENTIMENT
No reactions yet. Be the first to weigh in.
Discussion
Loading comments...
IN COMMITTEE· 119TH CONGRESS · FINANCE COMMITTEE · INTRODUCED JUN 4, 2025
Senate BillS 1938Taxation
A bill to amend the Internal Revenue Code of 1986 to modify the cover over of certain distilled spirits taxes.
INTRODUCED JUN 4, 2025· LAST ACTION JUN 4, 2025
PASSAGE CHANCES
—%
READING
3 min
COSPONSORS
4
COMPLEXITY
Moderate
