26-U.S.C.-5010

26-U.S.C.-5010

§5010 – Credit For Wine Content and For Flavors Content

Pathway

Title 26 > Subtitle E > Chapter 51 > Subchapter A > Part I > Subpart A > Section 5010

Details

  • Reference: Section 5010
  • Legend: §5010 – Credit For Wine Content and For Flavors Content
  • USCode Year: 2013

Provision 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

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.)

Prior Provisions

A prior section 5010, act Aug. 16, 1954, ch. 736, 68A Stat. 603, related to miscellaneous stamp provisions, prior to the general revision of this chapter by Pub. L. 85–859.

Amendments

2005—Subsec. (c)(2)(A). Pub. L. 109–59 substituted section 5114 for section 5134.

1990—Subsec. (a)(1), (2). Pub. L. 101–508 substituted $13.50 for $12.50.

1988—Subsec. (c)(2)(B). Pub. L. 100–647 added cl. (ii) and redesignated former cl. (ii) as (iii).

1984—Subsec. (a)(1), (2). Pub. L. 98–369 substituted $12.50 for $10.50.

Effective Date of 2005 Amendment

Amendment by Pub. L. 109–59 effective July 1, 2008, but inapplicable to taxes imposed for periods before such date, see section 11125(c) of Pub. L. 109–59, set out as a note under section 5002 of this title.

Effective Date of 1990 Amendment

Amendment by Pub. L. 101–508 effective Jan. 1, 1991, see section 11201(d) of Pub. L. 101–508, set out as a note under section 5001 of this title.

Effective Date of 1988 Amendment

Pub. L. 100–647, title V, §5063(b), Nov. 10, 1988, 102 Stat. 3681, provided 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].

Effective Date of 1984 Amendment

Amendment by Pub. L. 98–369 effective Oct. 1, 1985, see section 27(d)(1) of Pub. L. 98–369, set out as a note under section 5001 of this title.

Effective Date

Pub. L. 96–598, §6(c), Dec. 24, 1980, 94 Stat. 3489, provided that: The amendments made by subsections (a) and (b) [enacting this section] shall take effect on January 1, 1980.

U.S. Encyclopedia of Law Coverage

26-U.S.C.-5010 in the Legal Encyclopedia: Excise Taxes

In this entry about 26-U.S.C.-5010, find legal reference material, bibliographies and premiere content related to excise taxes in the American Encyclopedia of Law, presenting a comprehensive view of the United States excise taxes-specific issues, written by authorities in the field.

Part I – Gallonage Taxes in the Legal Encyclopedia: Wines

In this entry about Part I – Gallonage Taxes, find legal reference material, bibliographies and premiere content related to wines in the American Encyclopedia of Law, presenting a comprehensive view of the United States wines-specific issues, written by authorities in the field.

Subpart A – Distilled Spirits in the Legal Encyclopedia: Distilled Spirits

In this entry about Subpart A – Distilled Spirits, find legal reference material, bibliographies and premiere content related to distilled spirits in the American Encyclopedia of Law, presenting a comprehensive view of the United States distilled spirits-specific issues, written by authorities in the field.

27-U.S.C.-217 in the Legal Encyclopedia: And Beer

In this entry about 27-U.S.C.-217, find legal reference material, bibliographies and premiere content related to and beer in the American Encyclopedia of Law, presenting a comprehensive view of the United States and beer-specific issues, written by authorities in the field.

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