US Code

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

26 U.S.C. § 5111

Eligibility

Any person using distilled spirits on which the tax has been determined, in the manufacture or production of medicines, medicinal preparations, food products, flavors, flavoring extracts, or perfume, which are unfit for beverage purposes shall be eligible for drawback at the time when such distilled spirits are used in the manufacture of such products as provided for in this subpart.

Pub. L. 85–859, title II, § 20172 Stat. 1345Pub. L. 94–455, title XIX, § 1905(a)(11)90 Stat. 1819Pub. L. 100–203, title X, § 10512(d)101 Stat. 1330–448Pub. L. 103–465, title I, § 136(b)108 Stat. 4841Pub. L. 109–59, title XI, § 11125(a)(2)119 Stat. 1953(Added , , , § 5131; amended , , ; , , ; , , ; renumbered § 5111 and amended , (b)(3)(A), (C), , , 1954.)

Editorial Notes

Prior Provisions

Pub. L. 85–859, title II, § 20172 Stat. 1340Pub. L. 94–455, title XIX, § 1905(b)(3)(B)90 Stat. 1822Pub. L. 100–203, title X, § 10512(b)101 Stat. 1330–448Pub. L. 109–59, title XI, § 11125(a)(1)(C)119 Stat. 1953A prior section 5111, added , , ; amended , , ; , , , related to tax on wholesale dealers in liquors or beer, prior to repeal by , (c), , , 1957, effective , but inapplicable to taxes imposed for periods before such date.

act Aug. 16, 1954, ch. 73668A Stat. 618Pub. L. 85–859Another prior section 5111, , , related to tax on wholesale and retail dealers in liquors or beer, prior to the general revision of this chapter by .

Amendments

Pub. L. 109–59, § 11125(b)(3)(C)2005—, struck out “and rate of tax” after “Eligibility” in section catchline, struck out “(a) Eligibility for drawback” before “Any person”, and struck out subsec. (b). Text read as follows: “The special tax imposed by subsection (a) shall be $500 per year.”

Pub. L. 109–59, § 11125(b)(3)(A)section 5131 of this title, renumbered as this section.

Pub. L. 109–59, § 11125(a)(2)Subsec. (a). , struck out “, on payment of a special tax per annum,” after “beverage purposes”.

Pub. L. 103–4651994—Subsec. (a). substituted “flavoring extracts, or perfume” for “or flavoring extracts”.

Pub. L. 100–2031987—Subsec. (b). amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “The special tax imposed by subsection (a) shall be graduated in amount as follows: (1) for total annual use not exceeding 25 proof gallons, $25 a year; (2) for total annual use not exceeding 50 proof gallons, $50 a year; (3) for total annual use of more than 50 proof gallons, $100 a year.”

Pub. L. 94–4551976—Subsec. (a). struck out “produced in a domestic registered distillery or industrial alcohol plant and withdrawn from bond, or using distilled spirits withdrawn from the bonded premises of a distilled spirits plant,” after “Any person using distilled spirits”.

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 1994 Amendment

Pub. L. 103–465section 136(d) of Pub. L. 103–465section 5001 of this titleAmendment by effective , see , set out as a note under .

Effective Date of 1987 Amendment

Pub. L. 100–203, title X, § 10512(h)101 Stat. 1330–450

“(1)

In general .—

The amendments made by this section [enacting sections 5081, 5276, and 5731 of this title and amending this section and sections 5091, 5121, 5131, 5691, and 5801 of this title] shall take effect on .
“(2)

All taxpayers treated as commencing in business on .—

“(A)

In general .—

Any person engaged on , in any trade or business which is subject to an occupational tax shall be treated for purposes of such tax as having 1st engaged in such trade or business on such date.
“(B)

Limitation on amount of tax .—

In the case of a taxpayer who paid an occupational tax in respect of any premises for any taxable period which began before , and includes such date, the amount of the occupational tax imposed by reason of subparagraph (A) in respect of such premises shall not exceed an amount equal to ½ the excess (if any) of—
“(i)
the rate of such tax as in effect on , over
“(ii)
the rate of such tax as in effect on .
“(C)

Occupational tax .—

For purposes of this paragraph, the term ‘occupational tax’ means any tax imposed under part II of subchapter A of chapter 51, section 5276, section 5731, or section 5801 of the Internal Revenue Code of 1986 (as amended by this section).
“(D)

Due date of tax .—

The amount of any tax required to be paid by reason of this paragraph shall be due on .”
, , , provided that:

Effective Date of 1976 Amendment

Pub. L. 94–455section 1905(d) of Pub. L. 94–455section 5005 of this titleAmendment by effective on first day of first month which begins more than 90 days after , see , set out as a note under .

Effective Date

section 210(a)(1) of Pub. L. 85–859section 5001 of this titleSection effective , see , set out as a note under .