§ 5042. Exemption from tax

589 words·~3 min read·/usc/title-26/section-5042

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(a)Tax-free production

(1)Cider Subject to regulations prescribed by the Secretary, the noneffervescent product of the normal alcoholic fermentation of apple juice only, which is produced at a place other than a bonded wine cellar and without the use of preservative methods or materials, and which is sold or offered for sale as cider and not as wine or as a substitute for wine, shall not be subject to tax as wine nor to the provisions of subchapter F.

(2)Wine for personal or family use Subject to regulations prescribed by the Secretary—

(A)Exemption Any adult may, without payment of tax, produce wine for personal or family use and not for sale.

(B)Limitation The aggregate amount of wine exempt from tax under this paragraph with respect to any household shall not exceed—

(i)200 gallons per calendar year if there are 2 or more adults in such household, or

(ii)100 gallons per calendar year if there is only 1 adult in such household.

(C)Adults For purposes of this paragraph, the term “adult” means an individual who has attained 18 years of age, or the minimum age (if any) established by law applicable in the locality in which the household is situated at which wine may be sold to individuals, whichever is greater.

(3)Experimental wine Subject to regulations prescribed by the Secretary, any scientific university, college of learning, or institution of scientific research may produce, receive, blend, treat, and store wine, without payment of tax, for experimental or research use but not for consumption (other than organoleptical tests) or sale, and may receive such wine spirits without payment of tax as may be necessary for such production.

(b)Cross references

(1)For provisions relating to exemption of tax on losses of wine (including losses by theft or authorized destruction), see section 5370.

(2)For provisions exempting from tax samples of wine, see section 5372.

(3)For provisions authorizing withdrawals of wine free of tax or without payment of tax, see section 5362.

(Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1331; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95–458, § 2(a), Oct. 14, 1978, 92 Stat. 1255.)

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U.S. Code

CFR

statutes-at-large

Public Law 95–458
To amend the Internal Revenue Code of 1954 with respect to excise tax on certain trucks, buses, tractors, et cetera, home production of beer and wine, refunds of the taxes on gasoline and special fuels to aerial applicators, and partial rollovers of lump sum distributions

13 references not yet in our index

Pub. L. 85–859, title II, § 201
72 Stat. 1331
Pub. L. 94–455, title XIX, § 1906(b)(13)(A)
90 Stat. 1834
Pub. L. 95–458, § 2(a)
92 Stat. 1255
act Aug. 16, 1954, ch. 736
68A Stat. 610
Pub. L. 85–859
Pub. L. 95–458
Pub. L. 94–455
Pub. L. 95–458, § 2(c)
92 Stat. 1257

Citation graph

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§ 5042

Exemption from tax

U.S.C.×5

C.F.R.×4

Fed. Reg.×4

Stat.×2

Pub. L.Pub. L. 85–859, title II, § 201

Stat.72 Stat. 1331

Pub. L.Pub. L. 94–455, title XIX, § 1906(b)(13)(A)

Stat.90 Stat. 1834

Pub. L.Pub. L. 95–458, § 2(a)

Cites 13 · showing 5Cited by 15 across 4 sources