USC - Imposition and rate of tax

View all text of Subpart D [§ 5051 - § 5056]

§ 5051. Imposition and rate of tax

(a) Rate of tax

(1) In general

(A) Imposition of taxA tax is hereby imposed on all beer brewed or produced, and removed for consumption or sale, within the United States, or imported into the United States. Except as provided in paragraph (2), the rate of such tax shall be—

(i) $16 on the first 6,000,000 barrels of beer—(I) brewed by the brewer and removed during the calendar year for consumption or sale, or(II) imported by the importer into the United States during the calendar year but only if the importer is an electing importer under paragraph (4) and the barrels have been assigned to the importer pursuant to such paragraph, and

(ii) $18 on any barrels of beer to which clause (i) does not apply.

(B) Barrel

(2) Reduced rate for certain domestic production

(A) $3.50 a barrel rate

(B) Regulations

(3) Tolerances

(4) Reduced tax rate for foreign manufacturers and importers

(A) In general

(B) AssignmentThe Secretary, after consultation with the Secretary of the Department of Homeland Security, shall, through such rules, regulations, and procedures as are determined appropriate, establish procedures for assignment of the reduced tax rate provided under this paragraph, which shall include—

(i) a limitation to ensure that the number of barrels of beer for which the reduced tax rate has been assigned by a brewer—(I) to any importer does not exceed the number of barrels of beer brewed or produced by such brewer during the calendar year which were imported into the United States by such importer, and(II) to all importers does not exceed the 6,000,000 barrels to which the reduced tax rate applies,

(ii) procedures that allow the election of a brewer to assign and an importer to receive the reduced tax rate provided under this paragraph,

(iii) requirements that the brewer provide any information as the Secretary determines necessary and appropriate for purposes of carrying out this paragraph, and

(iv) procedures that allow for revocation of eligibility of the brewer and the importer for the reduced tax rate provided under this paragraph in the case of any erroneous or fraudulent information provided under clause (iii) which the Secretary deems to be material to qualifying for such reduced rate.

(5) Controlled group and single taxpayer rules

(A) In general

(B) Foreign manufacturers and importers

(6) Refunds in lieu of reduced rates for foreign production removed after December 31, 2022

(A) In generalIn the case of any barrels of beer which have been produced outside the United States and imported into the United States, if such barrels of beer are removed after December 31, 2022—

(i) paragraph (1)(A)(i) shall not apply, and

(ii) the amount determined under subparagraph (B) shall be allowed as a refund, determined for periods not less frequently than quarterly, to the importer in the same manner as if such amount were an overpayment of tax imposed by this section.

(B) Amount of refundThe amount determined under this subparagraph with respect to any importer for any period is an amount equal to the sum of—

(i) excess (if any) of—(I) the amount of tax imposed under this section on barrels of beer referred to in subparagraph (A) which were removed during such period, over(II) the amount of tax which would have been imposed under this section on such barrels of beer if this section were applied without regard to this paragraph, plus

(ii) the amount of interest which would be allowed and paid on an overpayment of tax at the overpayment rate established under section 6621(a)(1) (without regard to the second sentence thereof) were such rate applied to the excess (if any) determined under clause (i) for the number of days in the filing period for which the refund under this paragraph is being determined.

(D) Rules for refunds within 90 days

(b) Assessment on materials used in production in case of fraud

(c) Illegally produced beerThe production of any beer at any place in the United States shall be subject to tax at the rate prescribed in subsection (a) and such tax shall be due and payable as provided in section 5054(a)(3) unless—

(1) such beer is produced in a brewery qualified under the provisions of subchapter G, or

(2) such production is exempt from tax under section 5053(e) (relating to beer for personal or family use).

(Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1333; amended Pub. L. 86–75, § 3(a)(6), June 30, 1959, 73 Stat. 157; Pub. L. 86–564, title II, § 202(a)(8), June 30, 1960, 74 Stat. 290; Pub. L. 87–72, § 3(a)(8), June 30, 1961, 75 Stat. 193; Pub. L. 87–508, § 3(a)(7), June 28, 1962, 76 Stat. 114; Pub. L. 88–52, § 3(a)(8), June 29, 1963, 77 Stat. 72; Pub. L. 88–348, § 2(a)(8), June 30, 1964, 78 Stat. 237; Pub. L. 89–44, title V, § 501(d), June 21, 1965, 79 Stat. 150; Pub. L. 94–529, § 1, Oct. 17, 1976, 90 Stat. 2485; Pub. L. 95–458, § 2(b)(2)(A), Oct. 14, 1978, 92 Stat. 1256; Pub. L. 101–508, title XI, § 11201(c), Nov. 5, 1990, 104 Stat. 1388–416; Pub. L. 115–97, title I, § 13802(a)–(d), Dec. 22, 2017, 131 Stat. 2170, 2171; Pub. L. 116–94, div. Q, title I, § 144(b)(1), Dec. 20, 2019, 133 Stat. 3234; Pub. L. 116–260, div. EE, title I, §§ 106(b)(1)–(4), 107(b)(1), 110(a), Dec. 27, 2020, 134 Stat. 3042, 3046, 3049.)