§5312 — Title 26 Internal Revenue Code | U.S. Code

§5312 Production and use of distilled spirits for experimental research

Title 26 › Subtitle Subtitle E— - Alcohol, Tobacco, and Certain Other Excise Taxes › Chapter CHAPTER 51— - DISTILLED SPIRITS, WINES, AND BEER › Subchapter Subchapter E— - General Provisions Relating to Distilled Spirits › Part PART III— - MISCELLANEOUS PROVISIONS › § 5312

Last updated Apr 6, 2026|Official source

Summary

The Secretary can let scientific colleges and research institutions produce and test distilled spirits for research without paying tax, after the school files any bonds and applications the Secretary requires. The spirits can’t be drunk (except for taste tests) or sold, and only reasonable amounts may be used. The Secretary can also allow temporary experimental distilling plants to study raw materials, production methods, or industrial uses. He can waive other rules to make this work, but he cannot waive taxes on spirits taken from a school or plant.

Title 26, §5312

Internal Revenue Code — Source: USLM XML via OLRC

(a)Under such regulations as the Secretary may prescribe and on the filing of such bonds and applications as he may require, any scientific university, college of learning, or institution of scientific research may produce, receive, blend, treat, test, and store distilled spirits, without payment of tax, for experimental or research use but not for consumption (other than organoleptic tests) or sale, in such quantities as may be reasonably necessary for such purposes.

(b)Under such regulations as the Secretary may prescribe and on the filing of such bonds and applications as he may require, experimental distilled spirits plants may, at the discretion of the Secretary, be established and operated for specific and limited periods of time solely for experimentation in, or development of—

(1)sources of materials from which distilled spirits may be produced;

(2)processes by which distilled spirits may be produced or refined; or

(3)industrial uses of distilled spirits.

(c)The Secretary may by regulations provide for the waiver of any provision of this chapter (other than this section) to the extent he deems necessary to effectuate the purposes of this section, except that he may not waive the payment of any tax on distilled spirits removed from any such university, college, institution, or plant.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 5312, act Aug. 16, 1954, ch. 736, 68A Stat. 659, made a cross reference to remission and refund of tax on alcohol for loss or leakage, prior to the general revision of this chapter by Pub. L. 85–859. Provisions similar to those comprising this section were contained in prior sections of act Aug. 16, 1954, prior to the general revision of this chapter by Pub. L. 85–859, as follows: Present subsecs.:Prior sections (a)5215 (b)5305 (c)5215, 5306. The prior sections, act Aug. 16, 1954, ch. 736, are set out in 68A Stat. 640, 657.

Amendments

1976—Subsecs. (a) to (c). Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.