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

Summary

Gives a tax credit for distilled spirits by multiplying the number of cases by the average tax‑financing cost per case for the most recent calendar year before the tax year. For an eligible wholesaler, count the cases that were bottled in the United States and bought directly from the bottler during the tax year. For a person subject to section 5005 who is not an eligible wholesaler, count the cases stored in a State‑operated warehouse where title has not passed by an unconditional sale. An eligible wholesaler is a non‑State person who holds a wholesaler permit under the Federal Alcohol Administration Act. The average tax‑financing cost per case is the interest that would accrue at the deemed financing rate for a 60‑day period on $25.68. The deemed financing rate is the average of the corporate overpayment rates under section 6621(a) for the calendar year’s quarters. A case means twelve 80‑proof 750‑milliliter bottles, and cases in a lot are found by dividing liters by 9.