§5053 — Title 26 Internal Revenue Code | U.S. Code

Summary

Lets beer leave a brewery without paying federal tax in several specific situations, if the Secretary sets rules. Examples are exporting beer, sending sour or damaged beer for manufacturing, taking beer out for lab analysis, using beer for research or testing (not consumer or market testing), sending beer to a distillery as distilling material, moving beer to a bonded warehouse for certain foreign governments or officials, and removing beer for destruction. Adults may also brew beer at home tax-free for personal or family use only. A household with two or more adults can make up to 200 gallons per year. A one‑adult household can make up to 100 gallons per year. Rules like those in paragraphs (2) and (3) of section 5362(e) apply to bonded warehouse transfers. For vessel and aircraft supply exemptions, see section 309 of the Tariff Act of 1930 (19 U.S.C. 1309).

Title 26, §5053

Internal Revenue Code — Source: USLM XML via OLRC

(a)Beer may be removed from the brewery, without payment of tax, for export, in such containers and under such regulations, and on the giving of such notices, entries, and bonds and other security, as the Secretary may by regulations prescribe.

(b)When beer has become sour or damaged, so as to be incapable of use as such, a brewer may remove the same from his brewery without payment of tax, for manufacturing purposes, under such regulations as the Secretary may prescribe.

(c)Beer may be removed from the brewery, without payment of tax, for laboratory analysis, subject to such limitations and under such regulations as the Secretary may prescribe.

(d)Under such conditions and regulations as the Secretary may prescribe, beer may be removed from the brewery without payment of tax for use in research, development, or testing (other than consumer testing or other market analysis) of processes, systems, materials, or equipment relating to beer or brewery operations.

(e)Subject to regulation prescribed by the Secretary, any adult may, without payment of tax, produce beer for personal or family use and not for sale. The aggregate amount of beer exempt from tax under this subsection with respect to any household shall not exceed—

(1)200 gallons per calendar year if there are 2 or more adults in such household, or

(2)100 gallons per calendar year if there is only 1 adult in such household.

(f)Subject to such regulations as the Secretary may prescribe, beer may be removed from a brewery without payment of tax to any distilled spirits plant for use as distilling material.

(g)(1)Subject to such regulations as the Secretary may prescribe—

(A)beer may be withdrawn from the brewery without payment of tax for transfer to any customs bonded warehouse for entry pending withdrawal therefrom as provided in subparagraph (B), and

(B)beer entered into any customs bonded warehouse under subparagraph (A) may be withdrawn for consumption in the United States by, and for the official and family use of, such foreign governments, organizations, and individuals as are entitled to withdraw imported beer from such warehouses free of tax.

(2)Rules similar to the rules of paragraphs (2) and (3) of section 5362(e) shall apply for purposes of this subsection.

(h)Subject to such regulations as the Secretary may prescribe, beer may be removed from the brewery without payment of tax for destruction.

(i)For exemption as to supplies for certain vessels and aircraft, see section 309 of the Tariff Act of 1930, as amended (19 U.S.C. 1309).

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 5053, act Aug. 16, 1954, ch. 736, 68A Stat. 612, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85–859.

Amendments

1997—Subsec. (f). Pub. L. 105–34, § 1414(b), added subsec. (f). Former subsec. (f) redesignated (i). Subsec. (g). Pub. L. 105–34, § 1418(a), added subsec. (g). Subsec. (h). Pub. L. 105–34, § 1419(a), added subsec. (h). Subsec. (i). Pub. L. 105–34, § 1414(b), redesignated subsec. (f) as (i). 1978—Subsecs. (e), (f). Pub. L. 95–458 added subsec. (e) and redesignated former subsec. (e) as (f). 1976—Subsecs. (a) to (d). Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing. 1971—Subsecs. (d), (e). Pub. L. 91–673 added subsec. (d) and redesignated former subsec. (d) as (e). 1965—Subsec. (a). Pub. L. 89–44 struck out “to a foreign country” after “export”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1997 Amendment Pub. L. 105–34, title XIV, § 1414(d), Aug. 5, 1997, 111 Stat. 1047, provided that: “The

Amendments

made by this section [amending this section and section 5056 and 5222 of this title] shall take effect on the 1st day of the 1st calendar quarter that begins at least 180 days after the date of the enactment of this Act [Aug. 5, 1997].” Pub. L. 105–34, title XIV, § 1418(b), Aug. 5, 1997, 111 Stat. 1049, provided that: “The amendment made by subsection (a) [amending this section] shall take effect on the 1st day of the 1st calendar quarter that begins at least 180 days after the date of the enactment of this Act [Aug. 5, 1997].” Pub. L. 105–34, title XIV, § 1419(b), Aug. 5, 1997, 111 Stat. 1049, provided that: “The amendment made by subsection (a) [amending this section] shall take effect on the 1st day of the 1st calendar quarter that begins at least 180 days after the date of the enactment of this Act [Aug. 5, 1997].”

Effective Date

of 1978 AmendmentAmendment by Pub. L. 95–458 effective on first day of first calendar month beginning more than 90 days after Oct. 14, 1978, see section 2(c) of Pub. L. 95–458, set out as a note under section 5042 of this title.

Effective Date

of 1971 AmendmentAmendment by Pub. L. 91–673 effective on first day of first calendar month which begins more than 90 days after Jan. 12, 1971, see section 5 of Pub. L. 91–673, set out as a note under section 5056 of this title.

Effective Date

of 1965 AmendmentAmendment by Pub. L. 89–44 effective July 1, 1965, see section 807(c) of Pub. L. 89–44, set out as a note under section 5002 of this title.

§5053 Exemptions

Summary

Title 26, §5053

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Amendments

Effective Date

Effective Date

Effective Date

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