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26 U.S.C. § 5042 — Exemption from tax
Federal law — U.S. Code and appendices · legal_authorities
**(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 t
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Source file: Laws/federal/codes/united-states-code/title-26/section-5042-exemption-from-tax--3bde803897.md
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Source location: Title 26, Chapter 51, § 5042; chapter-051-distilled-spirits-wines-and-beer.md
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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.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Rate of tax**
(1) **In general**
(A) *Imposition of tax* — A tax is hereby imposed on all beer brewed or produced, and removed for consumption or sale, within the United States, or imported into the United States. Except as provided in paragraph (2), the rate of such tax shall be—
(i) $16 on the first 6,000,000 barrels of beer—
(I) brewed by the brewer and removed during the calendar year for consumption or sale, or
(II) imported by the importer into the United States during the calendar year but only if the importer is an electing importer under paragraph (4) and the barrels have been assigned to the importer pursuant to such paragraph, and
(ii) $18 on any barrels of beer to which clause (i) does not apply.
(B) *Barrel* — For purposes of this section, a barrel shall contain not more than 31 gallons of beer, and any tax imposed under this section shall be applied at a like rate for any other quantity or for fractional parts of a barrel.
(2) **Reduced rate for certain domestic production**
(A) *$3.50 a barrel rate* — In the case of a brewer who produces not more than 2,000,000 barrels of beer during the calendar year, the per barrel rate of the tax imposed by this section shall be $3.50 on the first 60,000 barrels of beer which are removed in such year for consumption or sale and which have been brewed or produced by such brewer at qualified breweries in the United States.
(B) *Regulations* — The Secretary may prescribe such regulations as may be necessary to prevent the reduced rates provided in this paragraph from benefiting any person who produces more than 2,000,000 barrels of beer during a calendar year.
(3) **Tolerances** — Where the Secretary or his delegate finds that the revenue will not be endangered thereby, he may
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 5051
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Removals for export** Beer may be removed from the brewery, without payment of tax, for export, in such containers and under such regulations, and on the giving of such notices, entries, and bonds and other security, as the Secretary may by regulations prescribe.
**(b) Removals when unfit for beverage use** When beer has become sour or damaged, so as to be incapable of use as such, a brewer may remove the same from his brewery without payment of tax, for manufacturing purposes, under such regulations as the Secretary may prescribe.
**(c) Removals for laboratory analysis** Beer may be removed from the brewery, without payment of tax, for laboratory analysis, subject to such limitations and under such regulations as the Secretary may prescribe.
**(d) Removals for research, development, or testing** Under such conditions and regulations as the Secretary may prescribe, beer may be removed from the brewery without payment of tax for use in research, development, or testing (other than consumer testing or other market analysis) of processes, systems, materials, or equipment relating to beer or brewery operations.
**(e) Beer for personal or family use** Subject to regulation prescribed by the Secretary, any adult may, without payment of tax, produce beer for personal or family use and not for sale. The aggregate amount of beer exempt from tax under this subsection with respect to any household shall not exceed—
(1) 200 gallons per calendar year if there are 2 or more adults in such household, or
(2) 100 gallons per calendar year if there is only 1 adult in such household.
For purposes of this subsection, 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 house
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 5053
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Time of determination**
(1) **Beer produced in the United States; certain imported beer** — Except as provided in paragraph (3), the tax imposed by section 5051 on beer produced in the United States, or imported into the United States and transferred to a brewery free of tax under section 5418, shall be determined at the time it is removed for consumption or sale, and shall be paid by the brewer thereof in accordance with section 5061.
(2) **Beer imported into the United States** — Except as provided in paragraph (4), the tax imposed by section 5051 on beer imported into the United States and not transferred to a brewery free of tax under section 5418 shall be determined at the time of the importation thereof, or, if entered for warehousing, at the time of removal from the 1st such warehouse.
(3) **Illegally produced beer** — The tax on any beer produced in the United States shall be due and payable immediately upon production unless—
(A) such beer is produced in a brewery qualified under the provisions of subchapter G, or
(B) such production is exempt from tax under section 5053(e) (relating to beer for personal or family use).
(4) **Unlawfully imported beer** — Beer smuggled or brought into the United States unlawfully shall, for purposes of this chapter, be held to be imported into the United States, and the internal revenue tax shall be due and payable at the time of such importation.
**(b) Tax on returned beer** Beer which has been removed for consumption or sale and is thereafter returned to the brewery shall be subject to all provisions of this chapter relating to beer prior to removal for consumption or sale, including the tax imposed by section 5051. The tax on any such returned beer which is again removed for consumption or sale shall be deter
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 5054
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Production, removal, and use**
(1) No mash, wort, or wash fit for distillation or for the production of distilled spirits shall be made or fermented in any building or on any premises other than on the bonded premises of a distilled spirits plant duly authorized to produce distilled spirits according to law; and no mash, wort, or wash so made or fermented shall be removed from any such premises before being distilled, except as authorized by the Secretary; and no person other than an authorized distiller shall, by distillation or any other process, produce distilled spirits from any mash, wort, wash, or other material.
(2) Nothing in this subsection shall be construed to apply to—
(A) authorized operations performed on the premises of vinegar plants established under part I of subchapter H;
(B) authorized production and removal of fermented materials produced on authorized brewery or bonded wine cellar premises as provided by law;
(C) products exempt from tax under the provisions of section 5042 or 5053(e); or
(D) fermented materials used in the manufacture of vinegar by fermentation.
**(b) Receipt** Under such regulations as the Secretary may prescribe, fermented materials to be used in the production of distilled spirits may be received on the bonded premises of a distilled spirits plant authorized to produce distilled spirits as follows—
(1) from the premises of a bonded wine cellar authorized to remove such material by section 5362(c)(6);
(2) beer conveyed without payment of tax from brewery premises, beer which has been lawfully removed from brewery premises upon determination of tax, or
(3) cider exempt from tax under the provisions of section 5042(a)(1).
**(c) Processing of distilled spirits containing extraneous substances** The Secretar
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 5222
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Unlawful production** Any person who brews beer or produces beer shall be fined not more than $1,000, or imprisoned not more than 1 year, or both, unless such beer is brewed or produced in a brewery qualified under subchapter G or such production is exempt from tax under section 5053(e) (relating to beer for personal or family use).
**(b) Unlawful removal** Any brewer or other person who removes or in any way aids in the removal from any brewery of beer without complying with the provisions of this chapter or regulations issued pursuant thereto shall be fined not more than $1,000, or imprisoned not more than 1 year, or both.
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 5674
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Federal law — U.S. Code and appendices · legal_authorities
Page 3156
TITLE 26—INTERNAL REVENUE CODE
§ 5042
Subsec. (b). Pub. L. 89–44, § 501(c)(1)–(5), struck out
provisions at end of each par. setting out a specified re-
duced rate to be applied on and after July 1, 1965.
1964—Subsec. (b). Pub. L. 88–348 substituted ‘‘July 1,
1965’’ for ‘‘July 1, 1964’’ in five places.
1963—Subsec. (b). Pub. L. 88–52 substituted ‘‘July 1,
1964’’ for ‘‘July 1, 1963’’ in five places.
1962—Subsec. (b). Pub. L. 87–508 substituted ‘‘July 1,
1963’’ for ‘‘July 1, 1962’’ in five places.
1961—Subsec. (b). Pub. L. 87–72 substituted ‘‘July 1,
1962’’ for ‘‘July 1, 1961’’ in five places.
1960—Subsec. (b). Pub. L. 86–564 substituted ‘‘July 1,
1961’’ for ‘‘July 1, 1960’’ in five places.
1959—Subsec. (b). Pub. L. 86–75 substituted ‘‘July 1,
1960’’ for ‘‘July 1, 1959’’ in five places.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2020 AMENDMENT
Pub. L. 116–260, div. EE, title I, § 106(d)(3), Dec. 27,
2020, 134 Stat. 3044, provided that: ‘‘The amendments
made by this subsection [amending this section] shall
apply to wine removed after December 31, 2020.’’
Pub. L. 116–260, div. EE, title I, § 106(e)(2), Dec. 27,
2020, 134 Stat. 3044, provided that: ‘‘The amendments
made by this subsection [amending this section] shall
apply to wine removed after December 31, 2020.’’
Pub. L. 116–260, div. EE, title I, § 106(f)(2), Dec. 27, 2020,
134 Stat. 3044, provided that: ‘‘The amendments made
by this subsection [amending this section] shall apply
to wine removed after December 31, 2020.’’
Pub. L. 116–260, div. EE, title I, § 107(c)(2), Dec. 27,
2020, 134 Stat. 3048, provided that: ‘‘The amendments
made by this subsection [amending this section] shall
apply to wine removed after December 31, 2022.’’
EFFECTIVE DATE OF 2019 AMENDMENT
Pub
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 5042
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