26 USC 5010 - Credit for wine content and for flavors content

U.S Code last checked for updates: May 04, 2024

§ 5010.

Credit for wine content and for flavors content

(a)

Allowance of credit

(1)

Wine content

On each proof gallon of the wine content of distilled spirits, there shall be allowed a credit against the tax imposed by section 5001 (or 7652) equal to the excess of—

(A)

$13.50, over

(B)

the rate of tax which would be imposed on the wine under section 5041(b) but for its removal to bonded premises.

(2)

Flavors content

(3)

Fractional part of proof gallon

(b)

Time for determining and allowing credit

(1)

In general

The credit allowable by subsection (a)—

(A)

shall be determined at the same time the tax is determined under section 5006 (or 7652) on the distilled spirits containing the wine or flavors, and

(B)

shall be allowable at the time the tax imposed by section 5001 (or 7652) on such distilled spirits is payable as if the credit allowable by this section constituted a reduction in the rate of tax.

(2)

Determination of content in the case of imports

(c)

Definitions

For purposes of this section—

(1)

Wine content

(A)

In general

(B)

Wine

The term “wine”—

(i)

means wine on which tax would be imposed by paragraph (1), (2), or (3) of section 5041(b) but for its removal to bonded premises, and

(ii)

does not include any substance which has been subject to distillation at a distilled spirits plant after receipt in bond.

(2)

Flavors content

(A)

In general

(B)

Exceptions

The term “flavors content” does not include—

(i)

alcohol derived from flavors made at a distilled spirits plant,

(ii)

alcohol derived from flavors distilled at a distilled spirits plant, and

(iii)

in the case of any distilled spirits product, alcohol derived from flavors to the extent such alcohol exceeds (on a proof gallon basis) 2½ percent of the finished product.

(Added Pub. L. 96–598, § 6(a), Dec. 24, 1980, 94 Stat. 3488; amended Pub. L. 98–369, div. A, title I, § 27(a)(2), July 18, 1984, 98 Stat. 507; Pub. L. 100–647, title V, § 5063(a), Nov. 10, 1988, 102 Stat. 3681; Pub. L. 101–508, title XI, § 11201(a)(2), Nov. 5, 1990, 104 Stat. 1388–415; Pub. L. 109–59, title XI, § 11125(b)(14), Aug. 10, 2005, 119 Stat. 1956.)

cite as: 26 USC 5010