1. Cover over of certain distilled spirits taxes (a) Repeal of limitation on cover over of distilled spirits taxes to Puerto Rico and Virgin Islands (1) In general Section 7652 of the Internal Revenue Code of 1986 is amended by striking subsection (f). (2) Conforming amendment Section 7652(g)(1) of such Code is amended— (A) by striking subparagraph (B), and (B) by striking as if— and all that follows through the use and tax and inserting as if the use and tax . (3) Effective date The amendments made by this subsection shall apply to articles brought into the United States after December 31, 2021. (b) Required transfer to Puerto Rico Conservation Trust Fund of portion of Puerto Rico rum cover over (1) In general Section 7652(a) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (4) Required transfer to puerto rico conservation trust fund of portion of rum taxes covered over (A) In general From any taxes collected on rum transported to the United States that are covered into the treasury of Puerto Rico under paragraph (3) at a rate equal to or greater than $10.50 per proof gallon, Puerto Rico shall transfer to the Puerto Rico Conservation Trust Fund an amount per proof gallon equal to or greater than 1/6 of the difference between $10.50 and the rate, not to exceed $13.25, at which such taxes are covered into such treasury. Puerto Rico’s obligations under this paragraph shall not modify or impair payment priorities established under Puerto Rico law and in effect on December 31, 2022 . (B) Puerto Rico conservation trust fund For purposes of this section, the term Puerto Rico Conservation Trust Fund means the fund which— (i) was established pursuant to a Memorandum of Understanding between the United States Department of the Interior and the Commonwealth of Puerto Rico, dated December 24, 1968, and (ii) provides for the conservation of natural areas in Puerto Rico, including through sustainable agriculture efforts and the reforestation and restoration of Puerto Rico’s