A bill to amend section 5051 of the Internal Revenue Code of 1954 (relating to the Federal excise tax on beer).
PL 94-529 (H.R.3605), enacted 10/17/1976

PUBLIC LAW 94-529—OCT. 17, 1976 
90 STAT. 2485 
Public Law 94-529 
94th Congress 
An Act 
To amend section 5051 of the Internal Revenue Code of 1954 (relating to the 
Federal excise tax on beer). 
Be it enacted hy the Senate and Hovse of Representatives of the 
United States of America in Congress assembled^ That subsection (a) 
of section 5051 of the Internal Revenue Code of 1954 (imposing a tax 
of $9 a barrel on beer produced or imported into the United States) 
is amended to read as follows: 
"(a) 
RATE or TAX.— 
"(1) I N GENERAL.—A 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 $9 for 
every barrel containing not more than 31 gallons and at a like 
rate for any other quantity or for fractional parts of a barrel. 
" ( 2 ) 
R E D U C E D RATE FOR CERTAIN DOMESTIC PRODUCTION.— 
"(A) $7 A B
A
R
R
E
L RATE.—In the case of a brewer who pro-
duces not more than 2,000,000 barrels of beer during the 
calendar year, the per barrel rate of the tax imposed by this 
section shall be $7 on the first 60,000 barrels of beer which 
are removed in such year for consumption or sale and which 
have been brewed or produced by such brewer at qualified 
bi-eweries in the United States. 
"(B) CONTROLLED GROUPS.—In the case of a controlled 
group, the 2,000,000 barrel quantity specified in subpara-
graph (A) shall be applied to the controlled group, and the 
60,000 barrel quantity specified in subparagraph (A) shall 
be apportioned among the brewers who are component mem-
bers of such group in such manner as the Secretary or his 
delegate shall by regulations prescribed. For purposes of the 
preceding sentence, the term 'controlled group' has the mean-
ing assigned to it by subsection (a) of section 1563, except 
that for such purposes the phrase 'more than 50 j)ercent' shall 
be substituted for the phrase 'at least 80 percent' in each place 
it appears in such subsection. Under regulations prescribed 
by the Secretary or his delegate, principles similar to the 
principles of the preceding two sentences shall be applied to 
a group of brewers under common control where one or more 
of the brewers is not a corporation. 
Oct. 17, 1976 
[H.R. 3605] 
Beer. 
Small business 
tax reduction. 
26 use 5051. 
"Controlled 
group." 
26 use 1563. 
90 STAT. 24S6 
PUBLIC LAW 94-529—OCT. 17, 1976 
"(3) ToLiERANCES.—Where the Secretary or his delegate finds 
that the revenue will not be endangered thereby, he may by regu-
lations prescribe tolerances for barrels and fractional parts of 
barrels, and, if such tolerances are prescribed, no assessment shall 
be made and no tax shall be collected for any excess in any case 
where the contents of a barrel or a fractional part of a barrel are 
within the limit of the applicable tolerance prescribed.". 
Effective date. 
SEC. 2. The amendment made by the first section of this Act shall 
26 use 5051 
take effect on the first day of the first calendar year which begins after 
note. 
the date of the enactment of this Act. 
Approved October 17, 1976. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 94-1346 (Comm. on Ways and Means). 
CONGRESSIONAL RECORD, Vol. 122 (1976): 
Sept. 13, considered and passed House. 
Sept. 30, considered and passed Senate.