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About Federal Excise Taxes on Food Grade Ethanol

This page contains more information related to Federal Excise Taxes applied to food grade ethanol products.

Do I have to pay the Federal Excise Tax is my use is "non-beverage"?

Answer: Yes, the Federal Excise Tax must be paid even if your final use is not for beverage purposes.  Non-beverage use customers may apply for Excise Tax Drawback from the TTB to have their excise taxes paid on non-beverage ethanol returned.  

What is Excise Tax Drawback?

Answer:  Drawback is the term used by the TTB for requesting back taxes paid but not owed.

How do I get my excise tax back from the TTB?

When a manufacturer uses that tax-paid alcohol in a non-beverage way, then a claim for the return of most of the excise tax (known as drawback) can occur.  Products seeking drawback must apply to the Nonbeverage Products Laboratory for analysis and confirmation that the formula is "unfit for beverage purposes".   Certain "for example" non-beverage use cases include: food products including baked goods and glazes, flavor extracts, medicines, concentrates, perfumes, and cocktail bitters.

For more information on Excise Tax Drawback steps, visit: https://www.ttb.gov/scientific-services-division/nonbeverage-drawback-alcohol

 

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