Requirements for Small Alcohol Fuel Plant Operations
TTB has approved your application as a small alcohol fuel plant (AFP). A copy of your permit should be forwarded to the appropriate state agency, if required. You should keep your permit and application on file at the permitted premises and available for examination by TTB officials. For more information about requirements, including the life of an AFP permit see our AFP Web page.
This permit is conditioned upon compliance with federal laws and regulations. You are required to:
- Gauge distilled spirits
- Take inventories
- Maintain records of your operations
- File reports
The following information explains the requirements you must meet to maintain your business.
As long as the fuel alcohol is withdrawn from an AFP under the provisions of 27 CFR, part 19, subpart X, taxes are not due. United States Code 26 U.S.C. 5214(a)(12 provides for the withdrawal of distilled spirits from AFP premises free of tax exclusively for fuel use. Section 5214(a)(12) states that distilled spirits on which the internal revenue has not been paid or determined, subject to such regulations as the secretary shall prescribe, may be withdrawn from bonded premises free of tax in the case of distilled spirits produced under Section 5181.
- Unfit for Beverage Use
The implementing regulation 27 CFR 19.728 provides that distilled spirits which have been rendered unfit for beverage use as prescribed by 27 CFR, part 19, subpart X, may be withdrawn free of tax from the premises of an AFP exclusively for fuel use.
- Diversion of Spirits
Payment of tax will be required in the case of diversion of spirits to beverage use or other unauthorized dispositions. The provisions of 27 CFR part 19, are applicable to distilled spirits for fuel use. Specifically:
- The imposition of tax liability (27 CFR 19.21 — 19.25);
- The assessment of tax (27 CFR 19.253 and 19.254); and
- Claims for tax (27 CFR 19.262and 19.263).
You can file your operational report using Pay.gov. It’s secure, free, faster, and less costly than using paper forms.
- Getting Started
Your system (computer) must meet technical requirements in order to access the Pay.gov online application. See more about getting started with Pay.gov.
You should have been issued a Pay.gov ID as part of the Alcohol and Tobacco Tax and Trade Bureau (TTB) application process. Your use of the ID constitutes agreement to the provisions in this disclaimer.
- User Guides
Our user guides give step by step instructions for performing tasks in Pay.gov. From accessing your profile, amending and filing reports, as well as access to other publications that will you navigate the system. Download the user guides.
Each proprietor of an Alcohol Fuel Plant (AFP) must file an Alcohol Fuel Plant Report annually. A report is due even if no operations were conducted during the period.
- Alcohol Fuel Plant Report (TTB F 5110.75)
This report is filed on a calendar year basis and due January 30 after the close of the year. You may file electronically through Pay.gov (recommended) or prepare in duplicate and submit the original to TTB. Keep a copy with your records for three years. Download Alcohol Fuel Plan Report TTB F 5110.75 [PDF].
- Where to File:
National Revenue Center
Alcohol and Tobacco Tax and Trade Bureau
550 Main St, Ste. 8002
Cincinnati, OH 45202-5215
Records will be prepared and kept at the alcohol fuel plant premises and available for inspection by a TTB officer during business hours. Required records are to be preserved for a period of not less than three years from either the date of the transaction or the date of the last entry required to be made, whichever is later.
- Records you are required to maintain:
- Annual Physical Inventory(27 CFR 19.710)
- Daily Quantity (volume or weight) and proof of spirits produced (27 CFR 19.714 – 19.718)
- Quantity (volume or weight) of spirits on-hand and received
- Quantity (volume or weight) and types of materials added to render spirits unfit for beverage use
- Quantity (volume or weight) of fuel alcohol manufactured
- Disposition of spirits and fuel alcohol
You must report to us any change in the name, address, ownership, management or control of the business without delay. You must also notify us immediately if you intend to increase your production or receipts to a level in excess of 10,000 proof gallons of spirits per calendar year.
If you filed your original application on paper, and haven't requested that your data be migrated to our Permits Online system, you should file these amendments on the TTB forms described in the applicable regulations. If you filed your original application through Permits Online, you should also electronically file your amendments in Permits Online.
- Change in Plant Location (Premises) (27 CFR 19.690)
Select this amendment if you will be moving your business operations to another location within the same state. If moving to another state you will need to file an original application. You will need to submit a new diagram, lease agreement or deed, and either a superseding bond or consent of surety.
- Change in Mailing Address (27 CFR 19.691)
Select this amendment if there has been a change to where you will receive mail.
- Change in Premises Address – USPS (27 CFR 19.691)
Select this amendment if your address was changed by the United States Postal Service but no physical move has taken place.
- Add/Remove Signing Authority
Select this amendment if you will be making any changes to the existing signing authority on file. You will be required to attach the appropriate documentation showing where the authorization is granted.
- Add/Remove Power of Attorney
Select this amendment if adding or removing individuals from outside your company with the power to sign and/or act on behalf of the company. When adding a Power of Attorney you can scan the form and upload into Permits Online. (Download TTB F 5000.8)
- Change in Business Name
Select this amendment if there has been a change to your legal business entity’s name. You will need to scan into Permits Online a copy of your amended Articles showing the name change.
- Change in Control (27 CFR 19.688)
A change in actual or legal control occurs when there are changes in stock ownership, LLC membership, in the corporate officers or directors of a corporation. In such situations, the legal business entity which operated the business in the past continues to operate the subject business. In other words, the same legal entity remains in existence and which continues to operate the business when someone new controls that entity.
If adding a new person an Owner Officer Information Application must be completed through Permits Online.
- Change in Officer, Director, Member, or Stockholder/Interest (27 CFR 19.687)
Select this amendment when there is a change in the officers, directors, members and managers, as well as any stockholders/interest holders who hold 10 percent or more. An Owner Office Information Application must be completed for each new person through Permits Online.
- Termination of Business (27 CFR 19.695)
Select this amendment if you are discontinuing business.
- Change in Officer, Director, Member, or Stockholder/Interest (27 CFR 19.687)
Select this amendment when there is a change in the officers, directors, members and managers, as well as any stockholders who hold 10 percent or more. An Owner Officer Information Application must be completed for each new person being added.
- Add/Remove Variance or Alternate Method (27 CFR 19.665 – 19.667)
Select this amendment if you are requesting to operate in a different way from the regulations. You will need to submit a letterhead notice stating the regulations you wish to vary from along with a reason why this variance is being requested.
- AFP Bond – Superseding/Strengthening* (27 CFR 19.700)
Select this amendment if there will be any changes to your current approved bond, such as, increase in penal sum, a different surety company.
- AFP Receiving Spirits or Denatured Spirits by Transfer in Bond* (27 CFR 19.733)
Select this amendment if you will be receiving spirits transferred in bond to your approved premise from another location.
- Change in AFP Equipment*
Select this amendment to convey a change in major equipment, or construction or use of the building(s) comprising of your premises, including extension or curtailment of your approved premises.
- Change in AFP Bonded Premises (Extended, Curtailed, or Modified)*
Select this amendment is there will be any changes to your bonded premises, to include, a change in major equipment or construction or use of the building(s) comprising of your premises, including extension or curtailment of your approved premises.
- Change in Size/Type* (27 CFR 19.685)
Select this amendment if you will have any change to the approved size of your Plant due to an increase or decrease in production.
TTB has been delegated authority under 26 U.S.C. Chapter 51 of the Internal Revenue Code of 1986 (IRC) to publish regulations pertaining to Alcohol Fuel Plants (AFPs).
Select an item to view the relevant section of the Code of Federal Regulations under 26 U.S.C. 5181, Distilled Spirits for Fuel Use.
The statutory provisions under which TTB disseminate such regulations includes Section 5181 of the IRC (26 U.S.C. 5181). This section provides for the establishment of AFPs to produce, process, store, and use or distribute distilled spirits to be used exclusively for fuel use.
Select an item to view the relevant section of the Code of Federal Regulations under 27 CFR Part 19, Subpart X, Distilled Spirits for Fuel Use and Authorized Materials for Rendering Spirits Unfit for Beverage Use.
Distilled spirits plant proprietors are required to determine taxes owed on spirits removed from their bonded premises. To do this, proprietors will need to "gauge" the spirits, that is, determine the quantity and proof of the spirits.
Gauges are required:
- On completion of production of spirit,
- On receipt of spirits at the plant,
- Prior to the addition of materials to render spirits unfit for beverage use
- Before withdrawal from premise or other disposition (fuel alcohol –volume only is required)
- When spirits are to be inventoried
If you are an AFP it is important that you know how to proof your spirits correctly. See our proofing Web page to help guide you through the proofing process. Note: Method used must be accurate (volume must be temperature-corrected).
Under 27 CFR 19.746(b), the following materials are approved to render spirits unfit for beverage use and thus acceptable for withdrawal from alcohol fuel plants as fuel alcohol. (See Authorized Materials for Fuel Alcohol.)
There are additional responsibilities and requirements that you may have to meet including state laws.
- TTB personnel have the right of entry into your premises.
- Please ensure you are in compliance with your state and local authorities before commencing operations (including building/use permits and zoning requirements). If you intend to sell your products in any other state (other than the state in which you are applying), you must contact each state individually because they all have different shipping laws. See our direct shipping page for more information.