the term low alcohol by volume wine means a wine— (i) containing not more than 0.64 gram of carbon dioxide per hundred milliliters of wine, except that the Secretary may by regulations prescribe such tolerances to this limitation as may be reasonably necessary in good commercial practice, (ii) which is derived— (I) primarily from grapes, or (II) from grape juice concentrate and water, (iii) which contains no fruit product or fruit flavoring other than grape, and (iv) which contains less than 8.5 percent alcohol by volume. . (b) Effective date The amendments made by this section shall apply to wine removed during calendar years beginning after December 31, 2018. IV Distilled Spirits 401. Reduced rate of excise tax on certain distilled spirits (a) In general Section 5001 of the Internal Revenue Code of 1986 is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: (c) Reduced rate (1) In general In the case of a distilled spirits operation, the otherwise applicable tax rate under subsection (a)(1) shall be— (A) $2.70 per proof gallon on the first 100,000 proof gallons of distilled spirits, and (B) $13.34 per proof gallon on the first 22,130,000 of proof gallons of distilled spirits to which subparagraph (A) does not apply, which have been distilled or processed by such operation and removed during the calendar year for consumption or sale, or which have been imported by the importer into the United States during the calendar year. (2) Controlled groups (A) In general In the case of a controlled group, the proof gallon quantities specified under subparagraphs (A) and (B) of paragraph (1) shall be applied to such group and apportioned among the members of such group in such manner as the Secretary or his delegate shall by regulations prescribe. (B) Definition For purposes of subparagraph (A), the term controlled group shall have the meaning given such term by subsection (a) of section 1563, except that more than 50 percent shall be substituted