Tax-Exempt Distilled Spirits for Vinegar Production

IRC §5501

Allows for the production of distilled spirits (up to 15% ABV) exclusively for use in manufacturing vinegar on-site without the standard distilled spirits tax liability.

Eligibility

Vinegar manufacturers using the vaporizing process who establish a plant specifically for this purpose.

Frequently Asked Questions

Who is eligible for the Tax-Exempt Distilled Spirits for Vinegar Production?

Vinegar manufacturers using the vaporizing process who establish a plant specifically for this purpose.

How does the Tax-Exempt Distilled Spirits for Vinegar Production work?

Allows for the production of distilled spirits (up to 15% ABV) exclusively for use in manufacturing vinegar on-site without the standard distilled spirits tax liability.

What law authorizes the Tax-Exempt Distilled Spirits for Vinegar Production?

The Tax-Exempt Distilled Spirits for Vinegar Production is authorized under IRC §5501 of the Internal Revenue Code (Title 26, United States Code).

Statutory Text — IRC §5501

Source: Internal Revenue Code, Title 26, United States Code

§ 5501. Establishment Plants for the production of vinegar by the vaporizing process, where distilled spirits of not more than 15 percent of alcohol by volume are to be produced exclusively for use in the manufacture of vinegar on the premises, may be established under this part. (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1390.) Editorial Notes Prior ProvisionsA prior section 5501, act Aug. 16, 1954, ch. 736, 68A Stat. 677, made a cross reference to provisions pertaining to establishment and operation of vinegar factories, prior to the general revision of this chapter by Pub. L. 85–859. Provisions similar to those comprising this section were contained in prior section 5216(a)(1), act Aug. 16, 1954, ch. 736, 68A Stat. 640, prior to the general revision of this chapter by Pub. L. 85–859. Statutory Notes and Related Subsidiaries Effective DateSection effective July 1, 1959, see section 210(a)(1) of Pub. L. 85–859, set out as a note under section 5001 of this title.

Legal Sources

US Code (Official) — 26 USC §5501 → Cornell Law Institute — 26 USC §5501 → Search IRS.gov for IRC §5501 → Treasury Regulations (26 CFR) →

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