104 STAT. 1388-416 PUBLIC LAW 101-508—NOV. 5, 1990 504103) is amended by striking "67 cents" and inserting " $1.57". (C) WINES CONTAINING MORE THAN 21 (BUT NOT MORE THAN 24) PERCENT ALCOHOL.—Par^aph (3) of section 5041(b) is amended by striking "$2.25" and inserting " $3.15". (D) ARTIFICIALLY CARBONATED WINES. —Paragraph (5) of section 50410?) is amended by striking "$2.40" and inserting "$3.30". (2) CREDIT FOR SMALL DOMESTIC PRODUCERS. — Section 5041 is amended by redesignating subsections (c), (d), and (e) as subsections (d), (e), and (f), respectively, and by inserting after subsection 0)) the following new subsection: "(c) CREDIT FOR SMALL DOMESTIC PRODUCERS. — "(1) ALLOWANCE OF CREDIT.— Except as provided in paragraph (2), in the CEise of a person who produces not more than 250,000 wine gallons of wine during the calendar year, there shall be allowed as a credit against any tax imposed by this title (other than chapters 2, 21, and 22) of 90 cents per wine g£dlon on the 1st 100,000 wine gallons of wine (other than wine described in subsection (b)(4)) which are removed during such year for consumption or sale and which have been produced at qualified facilities in the United States. "(2) REDUCTION IN CREDIT. —The credit allowable by paragraph (1) shall be reduced (but not below zero) by 1 percent for each 1,000 wine gallons of wine produced in excess of 150,000 wine gallons of wine 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) of this section, and "(B) shall be allowable at the time any tax described in paragraph (1) is payable as if the credit allowable by this subsection constituted a reduction in the rate of such tax. "(4) CONTROLLED GROUPS.— Rules similar to rules of section 5051(a)(2)(B) shall apply for purposes of this subsection. "(5) DENIAL OF DEDUCTION. —Any deduction under subtitle A with respect to any tax against which a credit is allowed under this subjection shall only be for the amount of such tax as reduced by such credit. "(6) REGULATIONS.—The Secretary may prescribe such regulations as may be necessary to prevent the credit provided in this subsection from benefiting any person who produces more than 250,000 wine gallons of wine during a calendar year and to assure proper reduction of such credit for persons producing more than 150,000 wine gallons of wine during a calendar year.' (3) CONFORMING AMENDMENT. —Paragraph (3) of section 5061(b) is amended to read as follows: "(3) section 5041(e),". (c) BEER. — (1) IN GENERAL.— Paragraph (1) of section 5051(a) (relating to imposition and rate of tax on beer) is amended by striking ' $9" and inserting "$18". (2) REGULATIONS. —Paragraph (2) of section 5051(a) is amended by adding at the end thereof the following new subparagraph: "(C) REGULATIONS. —The Secretary may prescribe such regulations as may be necessary to prevent the reduced
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