To amend the Internal Revenue Code of 1986 to modify the cover over of certain distilled spirits taxes.

This bill modifies how distilled spirits taxes collected in Puerto Rico are handled. It repeals a rule limiting tax coverage to Puerto Rico and the U.S. Virgin Islands, allowing those territories to transfer certain distilled spirits taxes to the U.S. Treasury. Crucially, it requires Puerto Rico to transfer 1/6 of the tax difference (above $10.50 per gallon) from rum taxes covered over into the Puerto Rico Conservation Trust Fund, which supports natural habitat conservation and sustainable agriculture. This directly affects Puerto Rico's rum industry and ensures a portion of those tax revenues funds conservation efforts.