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—
(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.
For purposes of this section—
(1) Wine content
(A) In general
The term “wine content” means alcohol derived from 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
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) 21/2 percent of the finished product.
1990—Subsec. (a)(1), (2). Pub. L. 101–508substituted “$13.50” for “$12.50”.
1988—Subsec. (c)(2)(B). Pub. L. 100–647added cl. (ii) and redesignated former cl. (ii) as (iii).
1984—Subsec. (a)(1), (2). Pub. L. 98–369substituted “$12.50” for “$10.50”.
Effective Date of 2005 Amendment
Amendment by Pub. L. 109–59effective July 1, 2008, but inapplicable to taxes imposed for periods before such date, see section 11125(c) ofPub. L. 109–59, set out as a note under section
5002 of this title.
Section 5063(b) ofPub. L. 100–647provided that: “The amendments made by this section [amending this section] shall apply with respect to distilled spirits withdrawn from bond after the date of the enactment of this Act [Nov. 10, 1988].”
Section 6(c) ofPub. L. 96–598provided that: “The amendments made by subsections (a) and (b) [enacting this section] shall take effect on January 1, 1980.”
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
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Description of Change
Statutes at Large
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