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Excise tax relief, distilled spirits used to produce hand sanitizers (COVID-19)

Excise tax relief, distilled spirits

The U.S. Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau (TTB) today issued a release announcing that it will continue to waive certain excise tax provisions with regard to distilled spirits that are used in the production of hand sanitizers as a response to the coronavirus (COVID-19) pandemic.

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The TTB release announces the extension of TTB hand sanitizer guidance through December 2020.

The TTB previously announced it was providing certain exemptions and waivers to distilled spirits permittees to facilitate the production of alcohol-based hand sanitizers. Read TaxNewsFlash

Subsequently, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law, providing for additional flexibility with regard to removals of distilled spirits free of tax for use in or contained in hand sanitizer that is produced and distributed in a manner consistent with Food and Drug Administration guidance related to COVID-19.

Today’s TTB release states that the agency is working to update the original guidance and to provide guidance on the additional flexibilities of the CARES Act. In the interim, TTB stated that it is extending any exemptions, waivers or other authorizations currently provided in TTB G 2020-1A, through December 31, 2020.


For more information, contact a tax professional with KPMG’s Excise Tax Practice group:

Taylor Cortright | +1 (202) 533 6188 | tcortright@kpmg.com

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