in section 5002(a)(8)), except such spirits that are unfit for use for beverage purposes. . (b) Conforming amendment Paragraph (5)(B)(ii) of section 263A(f) of the Internal Revenue Code of 1986, as redesignated by this section, is amended by inserting except as provided in paragraph (4), before ending on the date . (c) Effective date The amendments made by this section shall apply to interest costs paid or incurred in taxable years ending on or after December 31, 2018. II Beer 201. Reduced rate of excise tax on beer (a) In general Paragraph (1) of section 5051(a) of the Internal Revenue Code of 1986 is amended to read as follows: (1) In general (A) Imposition of tax A tax is hereby imposed on all beer brewed or produced, and removed for consumption or sale, within the United States, or imported into the United States. Except as provided in paragraph (2), the rate of such tax shall be— (i) $16 on the first 6,000,000 barrels of beer— (I) brewed by the brewer and removed during the calendar year for consumption or sale, or (II) imported by the importer into the United States during the calendar year, and (ii) $18 on any barrels of beer to which clause (i) does not apply. (B) Barrel For purposes of this section, a barrel shall contain not more than 31 gallons of beer, and any tax imposed under this section shall be applied at a like rate for any other quantity or for fractional parts of a barrel. . (b) Reduced rate for certain domestic production Subparagraph (A) of section 5051(a)(2) of the Internal Revenue Code of 1986 is amended— (1) in the heading, by striking $7 and inserting $3.50 , and (2) by striking $7 and inserting $3.50 . (c) Application of reduced tax rate for foreign manufacturers and importers Subsection (a) of section 5051 of the Internal Revenue Code of 1986 is amended— (1) in subparagraph (A)(i)(II) of paragraph (1), as amended by subsection (a) of this section, by inserting but only if the importer is an electing importer under paragraph (4) and the barrels have been assigned to the importer