27 CFR 25.152 - Reduced rate of tax for certain brewers.

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There is 1 rule appearing in the Federal Register for 27 CFR 25. View below or at eCFR (GPOAccess)
§ 25.152 Reduced rate of tax for certain brewers.
(a) General. Section 5051(a)(2) of Title 26 U.S.C. provides for a reduced rate of tax on the first 60,000 barrels of beer removed for consumption or sale by a brewer during a calendar year. To be eligible to pay the reduced rate of tax, a brewer:
(1) Shall brew or produce the beer at a qualified brewery in the United States;
(2) May not produce more than 2,000,000 barrels of beer per calendar year; and
(3) May not be a member of a “controlled group” of brewers whose members together produce more than 2,000,000 barrels of beer per calendar year.
The appropriate TTB officer shall deny use of the reduced rate of tax provided by 26 U.S.C. 5051(a)(2) where it is determined that the allowance of such a reduced rate would benefit a person who would otherwise fail to qualify for use of such rate.
(b) Definitions. For the purpose of determining eligibility for payment of the reduced rate of tax on beer, terms have the following meanings:
(1) Controlled group. A related group of brewers as defined in 26 U.S.C. 5051(a)(2)(B). Controlled groups include, but are not limited to:
(i) Parent-subsidiary controlled groups as defined in 26 CFR 1.1563-1(a)(2);
(ii) Brother-sister controlled groups as defined in 26 CFR 1.1563-1(a)(3); and
(iii) Combined groups as defined in 26 CFR 1.1563-1(a)(4). Stock ownership in a corporation need not be direct and 51% constructive ownership, defined in 26 CFR 1.1563-3, may be acquired through:
(A) An option to purchase stock;
(B) Attribution from partnerships;
(C) Attribution from estate or trusts;
(D) Attribution from corporations; or
(E) Ownership by spouses, children, grandchildren, parents, and grandparents.
(2) Production of beer. The production of beer as recorded in the brewer's daily records and reported in the Brewer's Report of Operations, Form 5130.9. For the purpose of determining compliance with the 2,000,000 barrel limitation, production of beer by a brewer or a controlled group of brewers includes both beer produced at qualified breweries within the United States and beer produced outside the United States.
(c) Brewers operating more than one brewery. Brewers who operate more than one brewery shall include the combined production of beer at all their breweries when determining eligibility under the 2,000,000 barrel limitation. The reduced rate of tax applies to the first 60,000 barrels of beer removed for consumption or sale in a calendar year by the brewer; the brewer shall apportion the 60,000 barrels among the breweries in the manner described in the notice as provided by § 25.167(b)(3).
(d) Controlled groups of brewers. Members of a controlled group of brewers shall include the combined production of beer by all member brewers when determining eligibility under the 2,000,000 limitation. The reduced rate of tax applies to the first 60,000 barrels of beer removed for consumption or sale in a calendar year by the controlled group of brewers; the controlled group of brewers shall apportion the 60,000 barrels among member brewers in the manner described in each brewer's notice as provided by § 25.167(b)(3).
(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended (26 U.S.C. 5052))
[T.D. ATD-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-307, 55 FR 52738, Dec. 21, 1990; T.D. ATF-345, 58 FR 40357, July 28, 1993]

Title 27 published on 2014-04-01

The following are only the Rules published in the Federal Register after the published date of Title 27.

For a complete list of all Rules, Proposed Rules, and Notices view the Rulemaking tab.

  • 2014-09-30; vol. 79 # 189 - Tuesday, September 30, 2014
    1. 79 FR 58674 - Small Brewers Bond Reduction and Requirement To File Tax Returns, Remit Tax Payments and Submit Reports Quarterly
      GPO FDSys XML | Text
      DEPARTMENT OF THE TREASURY, Alcohol and Tobacco Tax and Trade Bureau
      Final rule; Treasury decision.
      This final rule is effective on January 1, 2015.
      27 CFR Part 25

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.


United States Code
U.S. Code: Title 19 - CUSTOMS DUTIES
U.S. Code: Title 26 - INTERNAL REVENUE CODE

§ 5002 - Definitions

§ 5051 - Imposition and rate of tax

§ 5052 - Definitions

§ 5053 - Exemptions

§ 5054 - Determination and collection of tax on beer

§ 5056 - Refund and credit of tax, or relief from liability

§ 5061 - Method of collecting tax

§ 5121 - Recordkeeping by wholesale dealers

§ 5122 - Recordkeeping by retail dealers

§ 5123 - Preservation and inspection of records, and entry of premises for inspection

§ 5124 - Registration by dealers

§ 5222 - Production, receipt, removal, and use of distilling materials

§ 5401 - Qualifying documents

§ 5402 - Definitions

§ 5403 - Cross references

§ 5411 - Use of brewery

§ 5412 - Removal of beer in containers or by pipeline

§ 5413 - Brewers procuring beer from other brewers

§ 5414 - Removals from one brewery to another belonging to the same brewer

§ 5415 - Records and returns

§ 5416 - Definitions of package and packaging

§ 5417 - Pilot brewing plants

§ 5551 - General provisions relating to bonds

§ 5552 - Installation of meters, tanks, and other apparatus

§ 5555 - Records, statements, and returns

§ 5556 - Regulations

§ 5671 - Penalty and forfeiture for evasion of beer tax and fraudulent noncompliance with requirements

§ 5673 - Forfeiture for flagrant and willful removal of beer without taxpayment

§ 5684 - Penalties relating to the payment and collection of liquor taxes

§ 6011 - General requirement of return, statement, or list

§ 6061 - Signing of returns and other documents

§ 6065 - Verification of returns

§ 6091 - Place for filing returns or other documents

§ 6109 - Identifying numbers

§ 6151 - Time and place for paying tax shown on returns

§ 6301 - Collection authority

§ 6302 - Mode or time of collection

§ 6311 - Payment of tax by commercially acceptable means

§ 6313 - Fractional parts of a cent

§ 6402 - Authority to make credits or refunds

§ 6651 - Failure to file tax return or to pay tax

§ 6656 - Failure to make deposit of taxes

§ 6676 - Erroneous claim for refund or credit

§ 6806 - Occupational tax stamps

§ 7342 - Penalty for refusal to permit entry or examination

§ 7606 - Entry of premises for examination of taxable objects

§ 7805 - Rules and regulations

U.S. Code: Title 31 - MONEY AND FINANCE

Title 27 published on 2014-04-01

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 27 CFR 25 after this date.

  • 2014-09-30; vol. 79 # 189 - Tuesday, September 30, 2014
    1. 79 FR 58674 - Small Brewers Bond Reduction and Requirement To File Tax Returns, Remit Tax Payments and Submit Reports Quarterly
      GPO FDSys XML | Text
      DEPARTMENT OF THE TREASURY, Alcohol and Tobacco Tax and Trade Bureau
      Final rule; Treasury decision.
      This final rule is effective on January 1, 2015.
      27 CFR Part 25