Internal Revenue Code:Sec. 5010. Credit for wine content and for flavors content

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
       CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
        Subchapter A - Gallonage and Occupational Taxes
         PART I - GALLONAGE TAXES
          Subpart A - Distilled Spirits
        

Statute

    Sec. 5010. Credit for wine content and for flavors 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 5134.
        (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) 2 1/2 percent of the finished product.
 

Sources

    (Added Pub. L. 96-598, Sec. 6(a), Dec. 24, 1980, 94 Stat. 3488;
    amended Pub. L. 98-369, div.  A, title I, Sec. 27(a)(2), July 18,
    1984, 98 Stat. 507; Pub. L. 100-647, title V, Sec. 5063(a), Nov.
    10, 1988, 102 Stat. 3681; Pub. L. 101-508, title XI, Sec.
    11201(a)(2), Nov. 5, 1990, 104 Stat. 1388-415.)
 

Miscellaneous

                              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.
      A prior section 5011, act Aug. 16, 1954, ch. 736, 68A Stat. 604,
    related to abatement, remission, refund and allowance for loss or
    destruction of distilled spirits, prior to the general revision of
    this chapter by Pub. L. 85-859.
      A prior section 5012, act Aug. 16, 1954, ch. 736, 68A Stat. 605,
    related to drawback on exportation of distilled spirits, prior to
    the general revision of this chapter by Pub. L. 85-859.
                                 AMENDMENTS
      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 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
      Section 5063(b) of Pub. L. 100-647 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
      Section 6(c) of Pub. L. 96-598 provided that: ''The amendments
    made by subsections (a) and (b) (enacting this section) shall take
    effect on January 1, 1980.''