PRIA, Government Policy, Made Personal

Summary

Universities and research institutions may, under rules the Secretary sets and after filing required bonds and applications, produce, receive, blend, treat, test, and store distilled spirits for experimental research without paying tax. They may not use them for drinking (except brief taste tests) or sell them, and only in amounts reasonably needed. The Secretary may allow experimental distilling plants to study source materials, production or refining methods, and industrial uses. The Secretary can waive other chapter rules to do this, but cannot waive taxes on spirits taken from those institutions or plants.

Title 26, §5312

Internal Revenue Code, Source: USLM XML via OLRC

(a)Scientific institutions and colleges of learning

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)Experimental distilled spirits plants

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)

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

(3)industrial uses of distilled spirits.

(c)Authority to exempt

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.

§5312 Production and Use of Distilled Spirits for Experimental Research