§5011 Income Tax Credit for Average Cost of Carrying Excise Tax

Summary

You get a credit by multiplying the number of cases by the average tax‑financing cost per case for the most recent calendar year before your tax year. For an eligible wholesaler, count cases that were bottled in the United States and bought directly from the bottler during the taxable year. For a person covered by section 5005 who is not an eligible wholesaler, count cases that are stored in a state or local government warehouse (or its agency) where ownership has not passed by an unconditional sale. An eligible wholesaler is a person with a Federal Alcohol Administration Act wholesaler permit who is not a state, local government, or their agency. The average tax‑financing cost per case is the interest that would accrue at the "deemed financing rate" over 60 days on a deemed federal excise tax of $25.68 per case. The deemed financing rate is the average of the corporate overpayment rates in section 6621(a)(1) for the four quarters of that year (ignore that paragraph’s last sentence). A case means twelve 80‑proof 750‑milliliter bottles. To convert liters into cases, divide the liters by 9.