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Code · U.S. Code · Title 26 - INTERNAL REVENUE CODE · CHAPTER 51— DISTILLED SPIRITS, WINES, AND BEER · Subchapter A— Gallonage and Occupational Taxes · § 5010

§ 5010. Credit for wine content and for flavors content

768 words·~3 min read·/usc/title-26/section-5010

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(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 On each proof gallon of the flavors content of distilled spirits, there shall be allowed a credit against the tax imposed by section 5001 (or 7652) equal to $13.50.
(3)Fractional part of proof gallon In the case of any fractional part of a proof gallon of the wine content, or of the flavors content, of distilled spirits, a proportionate credit shall be allowed.
(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 For purposes of this section, the wine content, and the flavors content, of imported distilled spirits shall be established by such chemical analysis, certification, or other methods as may be set forth in regulations prescribed by the Secretary.
(c)Definitions For purposes of this section—
(1)Wine content
(A)In general The term “wine content” means alcohol derived from wine.
(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 Except as provided in subparagraph (B), the term “flavors content” means alcohol derived from flavors of a type for which drawback is allowable under section 5114.
(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.)
Connections93 cite this · traces to 2
Cited by 93 sections · top 49
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23 references not yet in our index
  • Pub. L. 96–598, § 6(a)
  • 94 Stat. 3488
  • Pub. L. 98–369, div. A, title I, § 27(a)(2)
  • 98 Stat. 507
  • Pub. L. 100–647, title V, § 5063(a)
  • 102 Stat. 3681
  • Pub. L. 101–508, title XI, § 11201(a)(2)
  • 104 Stat. 1388–415
  • Pub. L. 109–59, title XI, § 11125(b)(14)
  • 119 Stat. 1956
  • act Aug. 16, 1954, ch. 736
  • 68A Stat. 603
  • Pub. L. 85–859
  • Pub. L. 109–59
  • Pub. L. 101–508
  • Pub. L. 100–647
  • Pub. L. 98–369
  • section 11125(c) of Pub. L. 109–59
  • section 11201(d) of Pub. L. 101–508
  • Pub. L. 100–647, title V, § 5063(b)
  • section 27(d)(1) of Pub. L. 98–369
  • Pub. L. 96–598, § 6(c)
  • 94 Stat. 3489
Citation graph
cites case law
§ 5010
Credit for wine content and for flavors content
Fed. Reg.×53
C.F.R.×34
Stat.×5
U.S.C.×1
Pub. L.Pub. L. 96–598, § 6(a)
Stat.94 Stat. 3488
Pub. L.Pub. L. 98–369, div. A, title I, § 27(a)(2)
Stat.98 Stat. 507
Pub. L.Pub. L. 100–647, title V, § 5063(a)
Cites 25 · showing 7Cited by 93 across 4 sources
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