- Last Reviewed: 09/05/2018 | FAQ #AFP10
Frequently Asked Questions (FAQs): Alcohol Fuel Plant (AFP) and Fuel Alcohol
Are taxes due on fuel alcohol?
As long as the fuel alcohol is withdrawn from an AFP under the provisions of 27 CFR, part 19, subpart X, taxes are not due. The statutory provisions of 26 U.S.C. 5181 allow the withdrawal of distilled spirits from AFP premises free of tax exclusively for fuel use, as provided in 26 U.S.C. 5214(a)(12).
As provided in 27 CFR 19.669, tax will be due if spirits are diverted to beverage use or other unauthorized dispositions.
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Page last reviewed: September 12, 2018
Page last updated: September 13, 2018
Maintained by: Regulations and Rulings Division