The bill establishes a new section, 561.1215, in the Florida Statutes, which allows distributors of vinous, spirituous, or malt beverages to deduct certain excise taxes for alcoholic beverages that have become unsellable due to warehouse breakage, spoliation, evaporation, expiration, or unfitness for human consumption. The bill specifies the percentage of gross tax that can be deducted for each type of beverage: 0.49% for vinous, 0.15% for spirituous, and 0.20% or actual breakage for malt beverages. Distributors must elect their method of determining breakage for malt beverages annually and follow specific guidelines for reporting deductions based on the type of alcoholic beverage distributed.

Additionally, the bill defines "extraordinary loss" and outlines the procedures for reporting such losses, which are excluded from the standard deductions. Distributors must notify the Division of Alcoholic Beverages and Tobacco immediately upon an extraordinary loss and provide proof of the loss, including documentation of destruction, dumping, or recycling of the affected beverages. The bill also mandates that the division inspect remaining inventory and retain records for three years. The provisions of this section are retroactively applicable to January 1, 2025, and the division is authorized to adopt necessary rules and forms for implementation.