Home.Alcohol FAQs.General Alcohol FAQs
General Alcohol FAQs
G1: Can I produce beer, wine or spirits for my personal or family use without paying Federal excise tax and filing Federal paperwork?
Beer
Wine
Wine for personal or family use.
Spirits
You cannot produce spirits for beverage purposes without paying taxes and without prior approval of paperwork to operate a distilled spirits plant. [See 26 U.S.C. 5601 & 5602 for some of the criminal penalties.] There are numerous requirements that must be met that make it impractical to produce spirits for personal or beverage use. Some of these requirements are paying excise tax, filing an extensive application, filing a bond, providing adequate equipment to measure spirits, providing suitable tanks and pipelines, providing a separate building (other than a dwelling) and maintaining detailed records, and filing reports. All of these requirements are listed in 27 CFR Part 19.
Spirits may be produced for non-beverage purposes for fuel use only without payment of tax, but you also must file an application, receive TTB's approval, and follow requirements, such as construction, use, records and reports.
G2: What are the Federal and State excise taxes rates for spirits, wine and beer?
FEDERAL EXCISE TAX
View the Federal tax rates for wine, beer, and distilled spirits.
For information on the State taxes imposed on wine, beer, and distilled spirits, please visit www.TaxAdmin.org, or contact the appropriate State tax or revenue agency.
G3: Who can I contact when I have a complaint or suspect illegal activity by a bar, club, liquor store, restaurant or other business selling beverage alcohol products (spirits, wine or beer)?
With the exception of labeling, advertising and containers, the Alcohol and Tobacco Tax and Trade Bureau does not enforce laws about selling or serving spirits, wine or beer to consumers. Usually, State governments regulate persons selling or serving spirits, wine or beer to consumers. This includes the minimum legal age that a person may sell or serve. Most States have commissions or agencies, which oversee persons and businesses that sell or serve beverage alcohol products. Contact the appropriate State agency for help in these areas. Also, visit the Department of Transportation web site about restricting certain funds if a State allows the purchase or public possession of beverage alcohol products under the age of 21.
ACTIVITIES NOT RELATED TO BEVERAGE ALCOHOL PRODUCTS (spirits, wine or beer) - If you have information about illegal activities that do not involve beverage alcohol products (for example, drug sales or prostitution), report this information to the appropriate law enforcement agency. If you have information about illegal activities involving firearms, explosives, arson, or tobacco products, report this information to the Bureau of Alcohol, Tobacco, Firearms and Explosives.
LABELING, ADVERTISING OR CONTAINERS OF BEVERAGE ALCOHOL PRODUCTS (spirits, wine or beer) - Report this information to the Alcohol and Tobacco Tax and Trade Bureau by e-mail, telephone or writing to:
Alcohol and Tobacco Tax and Trade Bureau
Alcohol Labeling and Formulation Division
1310 G Street, NW., Box 12
Washington, DC 20005
TRADE PRACTICES BETWEEN BUSINESSES SELLING OR PURCHASING BEVERAGE ALCOHOL PRODUCTS (spirits, wine or beer) - Report this information to the Alcohol and Tobacco Tax and Trade Bureau at:
Alcohol and Tobacco Tax and Trade Bureau
Trade Investigations Division
1310 G Street, NW., Box 12
Washington, DC 20005
Phone: 202-453-2271
G4: Does TTB have information or studies about the effects of consuming alcohol?
The Alcohol and Tobacco Tax and Trade Bureau does not normally conduct studies or maintain information about alcohol consumption because we do not enforce laws or regulations relating to the effects from consuming alcohol. The Bureau has regulations about labeling and advertising and is committed to preventing consumer deception in beverage alcohol products.
There are several Federal web site addresses that may beneficial: http://www.whitehouse.gov; http://www.dhhs.gov; http://www.samhsa.gov; http://www.usdoj.gov; http://www.fhwa.dot.gov, and ; http://www.nhtsa.dot.gov.
You can also contact the National Institute on Alcohol Abuse and Alcoholism, 6000 Executive Blvd., Bethesda, MD 20892-7003 (301-443-3860).
Also, you may want to contact industry associations that represent beverage alcohol products industries. For example, from the Internet you should be able to reach the Wine Institute, the Distilled Spirits Council of the United States, and the Beer Institute.
G5: How does TTB change its regulations?
See "How Laws and Regulations are Made" at ../regulations/rulemaking_process.htm.
G6: Can a student make alcohol as part of a science fair project?
Well, under current law and regulations, we cannot allow you to conduct experiments involving distillation of alcohol at your home.
As an alternative, Federal law allows us to issue a permit for an alcohol fuel plant, or AFP. Under this type of permit, experiments with alcohol fuels can be conducted at locations properly qualified with TTB.
Here's what has to be done:
An authorized representative of your school (a teacher or other school official) must complete and forward an application form 5110.74 to us to establish a small AFP at your school.
The experiment must be conducted at your school under appropriate adult supervision.
The school official must tell us how long the experiment will last. They may allow for additional time in case your experiment is selected for additional competition or display at a regional or area science fair. And,
The school official must describe the adult supervision that will be provided. We require this because we are concerned about the safety of children handling hazardous materials and using distillation equipment with alcohol-even with adult supervision.
These steps apply primarily to students who are in elementary through high school. Make sure your application is filed as soon as possible to allow enough time for us to process it. You cannot begin the experiment until we issue you a permit.
Application form 5110.74 and additional information are available from the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, Spirits Unit A, 550 Main Street, Room 8002, Cincinnati, OH 45202-3263, 1-800-398-2282 or (513) 684-7150, TTBInternetQuestions@ttb.gov.
G7: Are commercial vinegar producers regulated by TTB?
Yes. Many vinegar production methods include a stage where alcohol has developed but vinegar, with its distinctive sour taste, has not. TTB regulates commercial vinegar production when there is a potential Federal excise tax liability as beverage alcohol under 26 U.S.C. 5001, 5041, or 5051 at any stage of production, including on raw materials used to make the vinegar.
Finished vinegar is not subject to alcohol beverage excise tax for any one of the following reasons:
- the manufacturing process makes it unsuitable for beverage use;
- the manufacturing process does not involve the production of alcohol; or
- none of the ingredients used to make the vinegar are subject to excise tax.
TTB does not regulate the following types of commercial vinegar production:
- vinegar made by diluting acetic acid;
- wine vinegar made from purchased wine that was made unfit for beverage use by the producing winery; or
- rice or malt vinegar made from purchased rice wine or beer that was made unfit for beverage use by the producing brewery.
Generally, all other vinegar production methods are regulated by TTB.
The TTB requirements to produce various types of finished vinegar are discussed below. Our website contains links to the TTB regulations cited on this page.
Wine vinegar
The regulations covering wine and wine vinegar production are in 27 CFR part 24 – Wine.
If you make vinegar from fresh fruit or juice, (this type of vinegar is classified as nonbeverage wine) you must:
- Qualify as a bonded wine cellar by filing an application and bond with TTB using Permits Online. See “Getting started in the Wine Industry” for more information. If you make only vinegar, you will not need the Federal Alcohol Administration Act wine producer’s permit that is required for producers of beverage wine.
- Obtain approval for your formula indicating how you plan to make nonbeverage wine /vinegar.
- Keep records and file reports in accordance with 27 CFR part 24, subpart O. You will not be subject to excise tax if you make only finished vinegar according to your approved formula.
If you make vinegar from purchased beverage wine on which no tax has been paid, you must:
- File a bond (TTB Form 5510.2) with TTB to cover the tax on wine on hand, in transit, and unaccounted for until it is made into vinegar.
- Purchase the wine in bond from a bonded wine cellar or winery.
- In accordance with 27 CFR 24.291, keep records of wine received, wine used in the manufacture of vinegar, vinegar produced, and vinegar removed, and allow examination of your premises by TTB officers.
If you make vinegar from beverage wine on which the excise taxes are paid, TTB cannot refund the tax to you. Your operations will not be regulated by TTB.
If you make vinegar from wine that was made unfit for beverage use by the producing wine cellar or winery (therefore has no tax liability), then your operations are not regulated by TTB.
Malt or rice vinegar
The regulations covering production of beer or rice wine (saké) are in 27 CFR part 25 – Beer. Nonbeverage products made from beer or rice wine at breweries under approved formulas will not be subject to the Federal excise tax on beer when they are removed for sale.
If you produce your own beer or rice wine in the making of vinegar, you must:
- Qualify with TTB as a brewer by filing a Brewer’s Notice and bond with TTB. In addition, you must obtain approval of the manufacturing of vinegar as an “other authorized use” of the brewery under 27 CFR 25.23(b) prior to production.
- Obtain approval of your formula indicating how you plan to make nonbeverage beer or rice wine.
- Keep records and file reports in accordance with 27 CFR part 25, subpart U.
- File tax returns, even when no tax is due (see 27 CFR 25.164).
If you purchase beer or rice wine that was made unfit for beverage use by the producing brewery, you may make that beer or rice wine into vinegar and your operations will not be regulated by TTB.
By law, beer or rice wine that is fit for beverage use cannot be transferred from the brewery to a manufacturer without payment of tax. If you make vinegar from beverage beer or rice wine on which the excise taxes are paid, TTB cannot refund the tax to you. Your operations will not be regulated by TTB.
Vinegar produced by distilling or the vaporizing process
If you want to produce vinegar by the “vaporizing process” (a process that involves the distillation of alcohol), see our information on qualifying as a distilled spirits plant under 27 CFR Part 19. See 27 CFR part 19 subpart W for rules on production of vinegar by the vaporizing process.
Manufacturer of nonbeverage products (MNBP)
If you buy taxpaid distilled spirits for vinegar production, TTB has a system for allowing drawback of most of the distilled spirits tax. See 27 CFR part 17 and our frequently asked questions to learn about the formula approval and claim process.
Vinegar production using specially denatured alcohol (SDA)
"Specially denatured" alcohol is a distilled spirits product with certain materials added that make it unfit for beverage use, but suitable for industrial uses. These denatured alcohol products may be shipped free of tax to persons who hold TTB permits as industrial alcohol users. See 27 CFR part 20 and "Information for Specially Denatured Spirits Applicants" for the permit, formula approval, and recordkeeping requirements for SDA users. Use Permits Online to apply.
Three formulas of SDA are authorized as a raw material for vinegar production. In two of them (SDA formulas 29 and 35-A), the denaturant is ethyl acetate, and in the other (SDA formula 18), the denaturant is vinegar. See 27 CFR 21.43, 21.56, and 21.62 for the specific formulas. Commercial strength vinegar made from SDA may contain trace amounts of residual alcohol, not to exceed 0.5 percent alcohol by volume, in the finished product (27 CFR 20.104).
Labeling of vinegar
Check with the Food and Drug Administration for vinegar labeling rules.
Other requirements
Check with your State alcohol regulatory agency to see if they regulate vinegar production.
For more information
If you have further questions, you may contact:
- Regulations and Rulings Division for general information;
- National Revenue Center for information on the qualification process;
- Advertising, Labeling and Formulation Division for information about formulas for nonbeverage products made at a winery or brewery; or
- Nonbeverage Products Laboratory for nonbeverage products made by an MNBP or SDA user, and for advice concerning imported nonbeverage alcohol products.
G8: Can I make vinegar for personal use?
If you want to produce wine or malt vinegar for personal or family use and not for sale, the quantity may be included in the amount of wine or beer produced under the exemption in 27 CFR 24.75 or 27 CFR 25.205-207. Please note that only a qualified distilled spirits plant may distill. There are no personal exemptions for production of distilled spirits.
G9: Does TTB regulate butanols, such as isobutanol?
Isobutanol is a type of alcohol that may be produced from petroleum or by fermentation, and TTB requirements may apply depending on the circumstances. TTB’s authority under the Internal Revenue Code (IRC) includes requirements relating to “distilled spirits.” Under the IRC, this term includes ethyl alcohol in any form (e.g., beverage alcohol or fuel ethanol) except beer or wine. Although the term does not include isobutanol, TTB requirements apply if distilled spirits are produced or used in connection with isobutanol manufacturing. For example, if a manufacturer produces isobutanol by a fermentation process that also generates ethyl alcohol and the manufacturer separates the materials using distillation, the manufacturer may be required to qualify as a distilled spirits plant under 27 CFR part 19. For more information, email IndustrialAlcoholRegs@ttb.gov or contact TTB’s Regulations and Rulings Division (http://www.ttb.gov/rrd/contact-us.shtml).
| Page last reviewed/updated: 10/16/2012 |
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