Are there different AFP sizes?nbsp; If so, what are they?
Yes, there are different AFP sizes depending on the amount of distilled spirits the AFP produces and receives per year. TTB has the authority to create guidelines for AFPs of different sizes. The statute (26 U.S.C. 5181) specifically refers to "small plants." Our regulations define small, medium, and large plants. The definitions of small, medium, and large plants are:
- Small plants. A small alcohol fuel plant (small plant) is a plant which produces and/or receives not more than 10,000 proof gallons of spirits per calendar year.
- Medium plants. A medium alcohol fuel plant (medium plant) is a plant which produces and/or receives more than 10,000 but not more than 500,000 proof gallons of spirits per calendar year.
- Large plants. A large alcohol fuel plant (large plant) produces and/or receives more than 500,000 proof gallons of spirits per calendar year.
The above categories were established based on the potential tax liability associated with the varying levels of activity. (Although distilled spirits used for beverage purposes are subject to Federal excise tax, fuel alcohol that is lawfully withdrawn and used is not subject to such tax.)
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