FERMENTED MATERIAL FROM ANY BREWERY MAY BE RECEIVED AT A DISTILLED SPIRITS PLANT.

SEC. 1414. FERMENTED MATERIAL FROM ANY BREWERY MAY BE RECEIVED AT A DISTILLED SPIRITS PLANT. (a) In General.—Section 5222(b)(2) (relating to receipt) is amended to read as follows: “(2) beer conveyed without payment of tax from brewery premises, beer which has been lawfully removed from brewery premises upon determination of tax, or”. (b) Clarification of Authority To Permit Removal of Beer Without Payment of Tax for Use as Distilling Material.—Section 5053 (relating to exemptions) is amended by redesignating subsection (0 as subsection (i) and by inserting after subsection (e) the following new subsection: “(f) Removal for Use as Distilling Material.—Subject to such regulations as the Secretary may prescribe, beer may be removed from a brewery without payment of tax to any distilled spirits plant for use as distilling material”. (c) Clarification of Refund and Credit of Tax.—Section 5056 (relating to refund and credit of tax, or relief from liability) is amended— (1) by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: “(c) Beer Received at a Distilled Spirits Plant.—Any tax paid by any brewer on beer produced in the United States may be refunded or credited to the brewer, without interest, or if the tax has not been paid, the brewer may be relieved of liability therefor, under regulations as the Secretary may prescribe, if such beer is received on the bonded premises of a distilled spirits plant pursuant to the provisions of section 5222(b)(2), for use in the production of distilled spirits.”, and (2) by striking “or rendering unmerchantable” in subsection (d) (as so redesignated) and inserting “rendering unmerchantable, or receipt on the bonded premises of a distilled spirits plant”. (d) Effective Date.—The amendments made by this section shall take effect on the 1st day of the 1st calendar quarter that begins at least 180 days after the date of the enactment of this Act.