REDUCED RATE OF EXCISE TAX ON CERTAIN WINE.

SEC. 13804. REDUCED RATE OF EXCISE TAX ON CERTAIN WINE.(a) In General.—Section 5041(c) is amended by adding at the end the following new paragraph:“(8) Special rule for 2018 and 2019.—“(A) In general.—In the case of wine removed after December 31, 2017, and before January 1, 2020, paragraphs (1) and (2) shall not apply and there shall be allowed as a credit against any tax imposed by this title (other than chapters 2, 21, and 22) an amount equal to the sum of—“(i) $1 per wine gallon on the first 30,000 wine gallons of wine, plus“(ii) 90 cents per wine gallon on the first 100,000 wine gallons of wine to which clause (i) does not apply, plus“(iii) 53.5 cents per wine gallon on the first 620,000 wine gallons of wine to which clauses (i) and (ii) do not apply,which are produced by the producer and removed during the calendar year for consumption or sale, or which are imported by the importer into the United States during the calendar year.“(B) Adjustment of credit for hard cider.—In the case of wine described in subsection (b)(6), subparagraph (A) of this paragraph shall be applied—“(i) in clause (i) of such subparagraph, by substituting ‘6.2 cents’ for ‘$1’,“(ii) in clause (ii) of such subparagraph, by substituting ‘5.6 cents’ for ‘90 cents’, and“(iii) in clause (iii) of such subparagraph, by substituting ‘3.3 cents’ for ‘53.5 cents’.”,131 STAT. 2174(b) Controlled Group and Single Taxpayer Rules.—Paragraph (4) of section 5041(c) is amended by striking “section 5051(a)(2)(B)” and inserting “section 5051(a)(5)”.(c) Allowance of Credit for Foreign Manufacturers and Importers.—Subsection (c) of section 5041, as amended by subsection (a), is amended—(1) in subparagraph (A) of paragraph (8), by inserting “but only if the importer is an electing importer under paragraph (9) and the wine gallons of wine have been assigned to the importer pursuant to such paragraph” after “into the United States during the calendar year”, and(2) by adding at the end the following new paragraph:“(9) Allowance of credit for foreign manufacturers and importers.—“(A) In general.—In the case of any wine gallons of wine which have been produced outside of the United States and imported into the United States, the credit allowable under paragraph (8) (referred to in this paragraph as the ‘tax credit’) may be assigned by the person who produced such wine (referred to in this paragraph as the ‘foreign producer’), provided that such person makes an election described in subparagraph (B)(ii), to any electing importer of such wine gallons pursuant to the requirements established by the Secretary under subparagraph (B).“(B) Assignment.—The Secretary shall, through such rules, regulations, and procedures as are determined appropriate, establish procedures for assignment of the tax credit provided under this paragraph, which shall include—“(i) a limitation to ensure that the number of wine gallons of wine for which the tax credit has been assigned by a foreign producer—“(I) to any importer does not exceed the number of wine gallons of wine produced by such foreign producer during the calendar year which were imported into the United States by such importer, and“(II) to all importers does not exceed the 750,000 wine gallons of wine to which the tax credit applies,“(ii) procedures that allow the election of a foreign producer to assign and an importer to receive the tax credit provided under this paragraph,“(iii) requirements that the foreign producer provide any information as the Secretary determines necessary and appropriate for purposes of carrying out this paragraph, and“(iv) procedures that allow for revocation of eligibility of the foreign producer and the importer for the tax credit provided under this paragraph in the case of any erroneous or fraudulent information provided under clause (iii) which the Secretary deems to be material to qualifying for such credit.“(C) Controlled group.—For purposes of this section, any importer making an election described in subparagraph (B)(ii) shall be deemed to be a member of the controlled 131 STAT. 2175 group of the foreign producer, as described under paragraph (4).”.(d) Effective Date.—The amendments made by this section shall apply to wine removed after December 31, 2017.