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26 U.S.C. § 5181 — Distilled spirits for fuel use
Federal law — U.S. Code and appendices · legal_authorities
**(a) In general**
(1) **Purposes for which plant may be established** — On such application and bond and in such manner as the Secretary may prescribe by regulation, a person may establish a distilled spirits plant solely for the purpose of—
(A) producing, processing, and storing, and
(B) using or distributing,
distilled spirits to be used exclusively for fuel use.
(2) **Regulations** — In prescribing regulations under paragraph (1) and in carrying out the provisions of this section, the Secretary shall, to the greatest extent possible, take steps to—
(A) expedite all applications;
(B) establish a minimum bond; and
(C) generally encourage and promote (through regulation or otherwise) the production of alcohol for fuel purposes.
**(b) Authority to exempt** The Secretary may by regulation provide for the waiver of any provision of this chapter (other than this section or any provision requiring the payment of tax) for any distilled spirits plant described in subsection (a) if the Secretary finds it necessary to carry out the provisions of this section.
**(c) Special rules for small plant production**
(1) **Applications**
(A) *In general* — An application for an operating permit for an eligible distilled spirits plant shall be in such a form and manner, and contain such information, as the Secretary may by regulations prescribe; except that the Secretary shall, to the greatest extent possible, take steps to simplify the application so as to expedite the issuance of such permits.
(B) *Receipt of application* — Within 15 days of receipt of an application under subparagraph (A), the Secretary shall send a written notice of receipt to the applicant, together with a statement as to whether the application meets the requirements of subparagraph (A).
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Source location: Title 26, Chapter 51, § 5181; chapter-051-distilled-spirits-wines-and-beer.md
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**(a) In general**
(1) **Purposes for which plant may be established** — On such application and bond and in such manner as the Secretary may prescribe by regulation, a person may establish a distilled spirits plant solely for the purpose of—
(A) producing, processing, and storing, and
(B) using or distributing,
distilled spirits to be used exclusively for fuel use.
(2) **Regulations** — In prescribing regulations under paragraph (1) and in carrying out the provisions of this section, the Secretary shall, to the greatest extent possible, take steps to—
(A) expedite all applications;
(B) establish a minimum bond; and
(C) generally encourage and promote (through regulation or otherwise) the production of alcohol for fuel purposes.
**(b) Authority to exempt** The Secretary may by regulation provide for the waiver of any provision of this chapter (other than this section or any provision requiring the payment of tax) for any distilled spirits plant described in subsection (a) if the Secretary finds it necessary to carry out the provisions of this section.
**(c) Special rules for small plant production**
(1) **Applications**
(A) *In general* — An application for an operating permit for an eligible distilled spirits plant shall be in such a form and manner, and contain such information, as the Secretary may by regulations prescribe; except that the Secretary shall, to the greatest extent possible, take steps to simplify the application so as to expedite the issuance of such permits.
(B) *Receipt of application* — Within 15 days of receipt of an application under subparagraph (A), the Secretary shall send a written notice of receipt to the applicant, together with a statement as to whether the application meets the requirements of subparagraph (A). If such a notice is not sent and the applicant has a receipt indicating that the Secretary has received an application, paragraph (2) shall apply as if a written notice required by the preceding sentence, together with a statement that the application meets the requirements of subparagraph (A), had been sent on the 15th day after the date the Secretary received the application.
(C) *Multiple applications* — If more than one application is submitted with respect to any eligible distilled spirits plant in any calendar quarter, the provisions of this section shall apply only to the first application submitted with respect to such plant during such quarter. For purposes of the preceding sentence, if a corrected or amended first application is filed, such application shall not be considered as a separate application, and the 15-day period referred to in subparagraph (A) shall commence with receipt of the corrected or amended application.
(2) **Determination**
(A) *In general* — In any case in which the Secretary under paragraph (1)(B) has notified an applicant of receipt of an application which meets the requirements of paragraph (1)(A), the Secretary shall make a determination as to whether such operating permit is to be issued, and shall notify the applicant of such determination, within 45 days of the date on which notice was sent under paragraph (1)(B).
(B) *Failure to make determination* — If the Secretary has not notified an applicant within the time prescribed under subparagraph (A), the application shall be treated as approved.
(C) *Rejection of application* — If the Secretary determines under subparagraph (A) that a permit should not be issued—
(i) the Secretary shall include in the notice to the applicant of such determination under subparagraph (A) detailed reasons for such determination, and
(ii) such determination shall not prejudice any further application for such operating permit.
(3) **Bond** — No bond shall be required for an eligible distilled spirits plant. For purposes of section 5212 and subsection (e)(2) of this section, the premises of an eligible distilled spirits plant shall be treated as bonded premises.
(4) **Eligible distilled spirits plant** — The term “eligible distilled spirits plant” means a plant which is used to produce distilled spirits exclusively for fuel use and the production from which does not exceed 10,000 proof gallons per year.
**(d) Withdrawal free of tax** Distilled spirits produced under this section may be withdrawn free of tax from the bonded premises (and any premises which are not bonded by reason of subsection (c)(3)) of a distilled spirits plant exclusively for fuel use as provided in section 5214(a)(12).
**(e) Prohibited withdrawal, use, sale, or disposition**
(1) **In general** — Distilled spirits produced under this section shall not be withdrawn, used, sold, or disposed of for other than fuel use.
(2) **Rendering unfit for use** — For protection of the revenue and under such regulations as the Secretary may prescribe, distilled spirits produced under this section shall, before withdrawal from the bonded premises of a distilled spirits plant, be rendered unfit for beverage use by the addition of substances which will not impair the quality of the spirits for fuel use.
**(f) Definition of distilled spirits** For purposes of this section, the term “distilled spirits” does not include distilled spirits produced from petroleum, natural gas, or coal.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Tax imposed**
(1) **Tax on removal, entry, or sale**
(A) *In general* — There is hereby imposed a tax at the rate specified in paragraph (2) on—
(i) the removal of a taxable fuel from any refinery,
(ii) the removal of a taxable fuel from any terminal,
(iii) the entry into the United States of any taxable fuel for consumption, use, or warehousing, and
(iv) the sale of a taxable fuel to any person who is not registered under section 4101 unless there was a prior taxable removal or entry of such fuel under clause (i), (ii), or (iii).
(B) *Exemption for bulk transfers to registered terminals or refineries*
(i) *In general* — The tax imposed by this paragraph shall not apply to any removal or entry of a taxable fuel transferred in bulk by pipeline or vessel to a terminal or refinery if the person removing or entering the taxable fuel, the operator of such pipeline or vessel (except as provided in clause (ii)), and the operator of such terminal or refinery are registered under section 4101.
(ii) *Nonapplication of registration to vessel operators entering by deep-draft vessel* — For purposes of clause (i), a vessel operator is not required to be registered with respect to the entry of a taxable fuel transferred in bulk by a vessel described in section 4042(c)(1).
(2) **Rates of tax**
(A) *In general* — The rate of the tax imposed by this section is—
(i) in the case of gasoline other than aviation gasoline, 18.3 cents per gallon,
(ii) in the case of aviation gasoline, 19.3 cents per gallon, and
(iii) in the case of diesel fuel or kerosene, 24.3 cents per gallon.
(B) *Leaking Underground Storage Tank Trust Fund tax* — The rates of tax specified in subparagraph (A) shall each be increased by 0.1 cent per gallon. Th
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Distilled spirits subject to lien**
(1) **General** — The tax imposed by section 5001(a)(1) shall be a first lien on the distilled spirits from the time the spirits are in existence as such until the tax is paid.
(2) **Exceptions** — The lien imposed by paragraph (1), or any similar lien imposed on the spirits under prior provisions of internal revenue law, shall terminate in the case of distilled spirits produced on premises qualified under internal revenue law for the production of distilled spirits when such distilled spirits are—
(A) withdrawn from bonded premises on determination of tax; or
(B) withdrawn from bonded premises free of tax under provisions of section 5214(a)(1), (2), (3), (11), or (12), or section 7510; or
(C) exported, deposited in a foreign-trade zone, used in the production of wine, laden as supplies upon, or used in the maintenance or repair of, certain vessels or aircraft, deposited in a customs bonded warehouse, or used in certain research, development, or testing, as provided by law.
**(b) Cross reference** For provisions relating to extinguishing of lien in case of redistillation, see section 5223(e).
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General** The distiller or importer of distilled spirits shall be liable for the taxes imposed thereon by section 5001(a)(1).
**(b) Domestic distilled spirits**
(1) **Liability of persons interested in distilling** — Every proprietor or possessor of, and every person in any manner interested in the use of, any still, distilling apparatus, or distillery, shall be jointly and severally liable for the taxes imposed by law on the distilled spirits produced therefrom.
(2) **Exception** — A person owning or having the right of control of not more than 10 percent of any class of stock of a corporate proprietor of a distilled spirits plant shall not be deemed to be a person liable for the tax for which such proprietor is liable under the provisions of paragraph (1). This exception shall not apply to an officer or director of such corporate proprietor.
**(c) Proprietors of distilled spirits plants**
(1) **Bonded storage** — Every person operating bonded premises of a distilled spirits plant shall be liable for the internal revenue tax on all distilled spirits while the distilled spirits are stored on such premises, and on all distilled spirits which are in transit to such premises (from the time of removal from the transferor’s bonded premises) pursuant to application made by him. Such liability for the tax on distilled spirits shall continue until the distilled spirits are transferred or withdrawn from bonded premises as authorized by law, or until such liability for tax is relieved by reason of the provisions of section 5008(a). Nothing in this paragraph shall relieve any person from any liability imposed by subsection (a) or (b).
(2) **Transfers in bond** — When distilled spirits are transferred in bond in accordance with the provisions of section 5212, persons li
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Purposes** Distilled spirits on which the internal revenue tax has not been paid or determined may, subject to such regulations as the Secretary shall prescribe, be withdrawn from the bonded premises of any distilled spirits plant in approved containers—
(1) free of tax after denaturation of such spirits in the manner prescribed by law for—
(A) exportation;
(B) use in the manufacture of ether, chloroform, or other definite chemical substance where such distilled spirits are changed into some other chemical substance and do not appear in the finished product; or
(C) any other use in the arts and industries (except for uses prohibited by section 5273(b) or (d)) and for fuel, light, and power; or
(2) free of tax by, and for the use of, the United States or any governmental agency thereof, any State, any political subdivision of a State, or the District of Columbia, for nonbeverage purposes; or
(3) free of tax for nonbeverage purposes and not for resale or use in the manufacture of any product for sale—
(A) for the use of any educational organization described in section 170(b)(1)(A)(ii) which is exempt from income tax under section 501(a), or for the use of any scientific university or college of learning;
(B) for any laboratory for use exclusively in scientific research;
(C) for use at any hospital, blood bank, or sanitarium), (including use in making any analysis or test at such hospital, blood bank, or sanitarium), or at any pathological laboratory exclusively engaged in making analyses, or tests, for hospitals or sanitariums; or
(D) for the use of any clinic operated for charity and not for profit (including use in the compounding of bona fide medicines for treatment outside of such clinics of patients thereof); or
(4) without payment of
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 5214
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Offenses** Any person who—
(1) **Unregistered stills** — has in his possession or custody, or under his control, any still or distilling apparatus set up which is not registered, as required by section 5179(a); or
(2) **Failure to file application** — engages in the business of a distiller or processor without having filed application for and received notice of registration, as required by section 5171(c); or
(3) **False or fraudulent application** — engages, or intends to engage, in the business of distiller, warehouseman, or processor of distilled spirits, and files a false or fraudulent application under section 5171; or
(4) **Failure or refusal of distiller, warehouseman, or processor to give bond** — carries on the business of a distiller, warehouseman, or processor without having given bond as required by law; or
(5) **False, forged, or fraudulent bond** — engages, or intends to engage, in the business of distiller, warehouseman, or processor of distilled spirits, and gives any false, forged, or fraudulent bond, under subchapter B; or
(6) **Distilling on prohibited premises** — uses, or possesses with intent to use, any still, boiler, or other utensil for the purpose of producing distilled spirits, or aids or assists therein, or causes or procures the same to be done, in any dwelling house, or in any shed, yard, or inclosure connected with such dwelling house (except as authorized under section 5178(a)(1)(C)), or on board any vessel or boat, or on any premises where beer or wine is made or produced, or where liquors of any description are retailed, or on premises where any other business is carried on (except when authorized under section 5178(b)); or
(7) **Unlawful production, removal, or use of material fit for production of distilled spirits** — ex
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 5601
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Federal law — U.S. Code and appendices · legal_authorities
Page 3189
TITLE 26—INTERNAL REVENUE CODE
§ 5181
1971—Subsec. (a)(4)(A). Pub. L. 91–659 substantially
reenacted existing provisions and added cl. (ii) and the
following sentence.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96–39 effective Jan. 1, 1980, see
section 810 of Pub. L. 96–39, set out as a note under sec-
tion 5001 of this title.
EFFECTIVE DATE OF 1977 AMENDMENT
Amendment by Pub. L. 95–176 effective on first day of
first calendar month beginning more than 90 days after
Nov. 14, 1977, see section 7 of Pub. L. 95–176, set out as
a note under section 5003 of this title.
EFFECTIVE DATE OF 1971 AMENDMENT
Amendment by Pub. L. 91–659 effective on first day of
first calendar month which begins more than 90 days
after Jan. 8, 1971, see section 6 of Pub. L. 91–659, set out
as an Effective Date note under section 5066 of this
title.
§ 5179. Registration of stills
(a) Requirements
Every person having in his possession or cus-
tody, or under his control, any still or distilling
apparatus set up, shall register such still or ap-
paratus with the Secretary immediately on its
being set up, by subscribing and filing with the
Secretary a statement, in writing, setting forth
the particular place where such still or distilling
apparatus is set up, the kind of still and its ca-
pacity, the owner thereof, his place of residence,
and the purpose for which said still or distilling
apparatus has been or is intended to be used (ex-
cept that stills or distilling apparatus not used
or intended to be used for the distillation, redis-
tillation, or recovery of distilled spirits are not
required to be registered under this section).
(b) Cross references
(1) For penalty and forfeiture provisions relating
to unre
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 5181
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