US Code

Public Law 119-73 (01/23/2026)

26 U.S.C. § 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 5114.

(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) 2½ percent of the finished product.

Pub. L. 96–598, § 6(a)94 Stat. 3488Pub. L. 98–369, div. A, title I, § 27(a)(2)98 Stat. 507Pub. L. 100–647, title V, § 5063(a)102 Stat. 3681Pub. L. 101–508, title XI, § 11201(a)(2)104 Stat. 1388–415Pub. L. 109–59, title XI, § 11125(b)(14)119 Stat. 1956(Added , , ; amended , , ; , , ; , , ; , , .)

Editorial Notes

Prior Provisions

act Aug. 16, 1954, ch. 73668A Stat. 603Pub. L. 85–859A prior section 5010, , , related to miscellaneous stamp provisions, prior to the general revision of this chapter by .

Amendments

Pub. L. 109–592005—Subsec. (c)(2)(A). substituted “section 5114” for “section 5134”.

Pub. L. 101–5081990—Subsec. (a)(1), (2). substituted “$13.50” for “$12.50”.

Pub. L. 100–6471988—Subsec. (c)(2)(B). added cl. (ii) and redesignated former cl. (ii) as (iii).

Pub. L. 98–3691984—Subsec. (a)(1), (2). substituted “$12.50” for “$10.50”.

Statutory Notes and Related Subsidiaries

Effective Date of 2005 Amendment

Pub. L. 109–59section 11125(c) of Pub. L. 109–59section 5002 of this titleAmendment by effective , but inapplicable to taxes imposed for periods before such date, see , set out as a note under .

Effective Date of 1990 Amendment

Pub. L. 101–508section 11201(d) of Pub. L. 101–508section 5001 of this titleAmendment by effective , see , set out as a note under .

Effective Date of 1988 Amendment

Pub. L. 100–647, title V, § 5063(b)102 Stat. 3681

“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 [].”
, , , provided that:

Effective Date of 1984 Amendment

Pub. L. 98–369section 27(d)(1) of Pub. L. 98–369section 5001 of this titleAmendment by effective , see , set out as a note under .

Effective Date

Pub. L. 96–598, § 6(c)94 Stat. 3489

“The amendments made by subsections (a) and (b) [enacting this section] shall take effect on .”
, , , provided that: