TTB Updates and Relaxes Regulations on Tax-Free Denatured Alcohol

The Alcohol and Tobacco Tax and Trade Bureau is amending its regulations on denatured alcohol and products made using industrial alcohol (here). The agency’s final rule eliminates “outdated” specially denatured spirits formulas from the regulations, reclassifies some specially denatured spirits formulas as completely denatured alcohol formulas, and adds new general-use formulas for manufacturing products with specially denatured spirits. Unlike other spirits, denatured alcohol, or spirits with additives that make them unfit for human consumption, isn’t subject to excise taxes. TTB regulates specially denatured alcohol more heavily than completely denatured alcohol because specially denatured alcohol tastes better and is more easily turned into potable alcohol. The final rule takes effect Oct. 31.