To amend the Internal Revenue Code of 1986 to reduce the rate of tax on distilled spirits produced by small producers.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Small Distillery Excise Tax Act of 2011''.
SEC. 2. REDUCED RATE OF TAX ON DISTILLED SPIRITS PRODUCED BY SMALL PRODUCERS.
(a) In General.--Section 5001 of the Internal Revenue Code of 1986 (relating to imposition, rate, and attachment of tax on distilled spirits) is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: ``(c) Credit for Small Producers.-- ``(1) Allowance of credit.--In the case of a small distilled spirits producer, there shall be allowed as a credit against the tax imposed by this title (other than chapters 2, 21, and 22) an amount equal to 80 percent of the otherwise applicable tax on the first 65,000 of proof gallons of distilled spirits produced by such producer during the calendar year at qualified facilities in the United States. ``(2) Small distilled spirits producer.--For purposes of this subsection, the term `small distilled spirits producer' means any person who produces not more than 100,000 proof gallons of distilled spirits during the calendar year. ``(3) Time for determining and allowing credit.--The credit allowable by paragraph (1)-- ``(A) shall be determined at the same time the tax is determined under subsection (a), and ``(B) shall...