Statutes, codes, and regulations
United States Code
Title 26 - INTERNAL REVENUE CODESubtitle E - ALCOHOL, TOBACCO, AND CERTAIN OTHER EXCISE TAXESChapter 51 - DISTILLED SPIRITS, WINES, AND BEERSubchapter A - GALLONAGE AND OCCUPATIONAL TAXESPart I - GALLONAGE TAXES
Subpart A - DISTILLED SPIRITS
Section 5011 - Income tax credit for average cost of carrying excise tax

26 U.S.C. § 5011

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Current through P.L. 118-106 (published on www.congress.gov on 10/04/2024)
Section 5011 - Income tax credit for average cost of carrying excise tax
(a) In general

For purposes of section 38, the amount of the distilled spirits credit for any taxable year is the amount equal to the product of-

(1) in the case of-
(A) any eligible wholesaler, the number of cases of bottled distilled spirits-
(i) which were bottled in the United States, and
(ii) which are purchased by such wholesaler during the taxable year directly from the bottler of such spirits, or
(B) any person which is subject to section 5005 and which is not an eligible wholesaler, the number of cases of bottled distilled spirits which are stored in a warehouse operated by, or on behalf of, a State or political subdivision thereof, or an agency of either, on which title has not passed on an unconditional sale basis, and
(2) the average tax-financing cost per case for the most recent calendar year ending before the beginning of such taxable year.
(b) Eligible wholesaler

For purposes of this section, the term "eligible wholesaler" means any person which holds a permit under the Federal Alcohol Administration Act as a wholesaler of distilled spirits which is not a State or political subdivision thereof, or an agency of either.

(c) Average tax-financing cost
(1) In general

For purposes of this section, the average tax-financing cost per case for any calendar year is the amount of interest which would accrue at the deemed financing rate during a 60-day period on an amount equal to the deemed Federal excise tax per case.

(2) Deemed financing rate

For purposes of paragraph (1), the deemed financing rate for any calendar year is the average of the corporate overpayment rates under paragraph (1) of section 6621(a) (determined without regard to the last sentence of such paragraph) for calendar quarters of such year.

(3) Deemed Federal excise tax per case

For purposes of paragraph (1), the deemed Federal excise tax per case is $25.68.

(d) Other definitions and special rules

For purposes of this section-

(1) Case

The term "case" means 12 80-proof 750-milliliter bottles.

(2) Number of cases in lot

The number of cases in any lot of distilled spirits shall be determined by dividing the number of liters in such lot by 9.

26 U.S.C. § 5011

Added Pub. L. 109-59, title XI, §11126(a), Aug. 10, 2005, 119 Stat. 1957.

EDITORIAL NOTES

REFERENCES IN TEXTThe Federal Alcohol Administration Act, referred to in subsec. (b), is act Aug. 29, 1935, ch. 814, 49 Stat. 977, which is classified generally to subchapter I (§201 et seq.) of chapter 8 of Title 27, Intoxicating Liquors. For complete classification of this Act to the Code, see section 201 of Title 27 and Tables.

PRIOR PROVISIONSA 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.

STATUTORY NOTES AND RELATED SUBSIDIARIES

EFFECTIVE DATESection applicable to taxable years beginning after Sept. 30, 2005, see section 11126(d) of Pub. L. 109-59, set out as an Effective Date of 2005 Amendments note under section 38 of this title.

State
The term "State" shall be construed to include the District of Columbia, where such construction is necessary to carry out provisions of this title.
person
The term "person" shall be construed to mean and include an individual, a trust, estate, partnership, association, company or corporation.
taxable year
The term "taxable year" means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which the taxable income is computed under subtitle A. "Taxable year" means, in the case of a return made for a fractional part of a year under the provisions of subtitle A or under regulations prescribed by the Secretary, the period for which such return is made.