Section 1Sec./Art. 1

Section 134 of the National Internal Revenue Code of 1997, as amended, is hereby amended to read as follows:

"Section 134.

Denatured Alcohol. - Ethyl alcohol of not less than one hundred eighty degrees (180o) proof (ninety percent (90%) alcohol by volume), whether imported or locally manufactured, shall, when suitably denatured under Section 168 of this Code and rendered unfit for oral intake, be exempt from the excise tax, prescribed in Section 141: Provided, however, That such alcohol shall be subject to tax under Section 106(A) of this Code: Provided, further, That if such alcohol is to be used for motive power, it shall be taxed under Section 148(d) of this Code: Provided, finally, That any alcohol, previously rendered unfit for oral intake after denaturing but subsequently rendered fit for oral intake after undergoing further processing shall be taxed under Section 141 of this Code and such tax shall be paid by the person in possession of such reprocessed spirits."