einsteinlady
Member
Anyone that uses ethanol for extraction/recovery; have you gotten a federal permit to reclaim the ethanol?
Anyone that uses ethanol for extraction/recovery; have you gotten a federal permit to reclaim the ethanol?
I don't think that people who are using ethanol as an industrial solvent are subject to TTB regulations and fees, those regulation are for the alcoholic beverage industry only. Any permitted legal use of ethanol in cannabis extraction (i.e. at a federally legal hemp farm) should be permitted under the PART 22—DISTRIBUTION AND USE OF TAX-FREE ALCOHOL rules ( https://www.ecfr.gov/cgi-bin/text-i...c=true&node=pt27.1.22&rgn=div5#se27.1.22_1101 )
Furthermore, evaporating high proof alcohol and recovering similarly high proof alcohol isn't distillation with respect to the licensing requirements because the net increase in alcohol percentage is negligible. It would probably be a storage permit rather than a distillation one.
If the question question were rephrased as "have you gotten a federal permit to store ethanol?" then my answer would be no, because I don't reclaim my alcohol most of the time, I'm a filthy polluter. I don't want a bunch of suspicious looking equipment in my house making it look like its a drug lab. Mother nature will reclaim it for me.
Anyway don't get stuck into paying alcohol excise tax for your industrial solvents if you don't need to. Most of us are accustomed to getting our solvent alcohol via the alcoholic beverage industry by going to the liquor store, but there is a less expensive way if the alcohol isn't intended for ingestion.
As per Alcohol & Tobacco Tax & Trade Bureau at the U.S. Department of the Treasury:
"Tax-Free alcohol may not be withdrawn and used
for beverage purposes, or in any food product, or
in any preparation used in preparing a beverage
or a food product."
"Tax-Free alcohol may not be used in the
manufacture of any product which will be sold or in
any product resulting from the use of tax-free
alcohol which will be sold. Hospitals, sanitariums,
or clinics may, however, make a separate charge
for medicines compounded on the premises and
dispensed to patients for use on the premises."
So basically, if the ethanol makes a product that is to be sold, or if that product is meant for ingestion, the alcohol doesn't qualify as tax-exempt. I doubt that smoking the product will be a loophole in the eyes of TTB. The link below also includes information regarding "Production and Use of Distilled Spirits for Experimental Research."
https://www.ttb.gov/industrial/taxfree_regs_laws.shtml
As per Alcohol & Tobacco Tax & Trade Bureau at the U.S. Department of the Treasury:
"Tax-Free alcohol may not be withdrawn and used
for beverage purposes, or in any food product, or
in any preparation used in preparing a beverage
or a food product."
"Tax-Free alcohol may not be used in the
manufacture of any product which will be sold or in
any product resulting from the use of tax-free
alcohol which will be sold. Hospitals, sanitariums,
or clinics may, however, make a separate charge
for medicines compounded on the premises and
dispensed to patients for use on the premises."
So basically, if the ethanol makes a product that is to be sold, or if that product is meant for ingestion, the alcohol doesn't qualify as tax-exempt. I doubt that smoking the product will be a loophole in the eyes of TTB. The link below also includes information regarding "Production and Use of Distilled Spirits for Experimental Research."
https://www.ttb.gov/industrial/taxfree_regs_laws.shtml
They have loopholes for that, flavor extract manufacturers get a 93% refund on alcohol excise taxes. https://www.ttb.gov/ssd/nonbeverage_drawback_alcohol.shtml
Not a loophole at all, very legitimate! Thanks for this
I still think food products would not qualify for the refund. Smokeables maybe....
I don't see many people submitting their recipes, and mailing controlled substances across the country to get them approved.
Just sayin.
Nobody said anything about mailing dabs to feds.
If you're buying ethanol as a business doing licensed extractions, then first of all, your information is pretty public. A quick investigation would tell them that you are a cannabis processor in your state. Now remember, this TTB doesn't recognize cannabis as legal...
If you go look at the application,
(https://www.ttb.gov/forms/f515022.pdf), they do require you fill out:
1) "Purpose for which spirits will be used;"
2) "Purpose for which this application is filed;"
3) "List of equipment used in recovery process (include serial number, kind, capacity, name and address of manufacturer and owner of distilling apparatus, and state the intended use."
You sure could lie about all of it, but that probably isn't the smartest move for a recreational cannabis extraction company. That's all I'm saying...
Nobody said anything about mailing dabs to feds.
If you're buying ethanol as a business doing licensed extractions, then first of all, your information is pretty public. A quick investigation would tell them that you are a cannabis processor in your state. Now remember, this TTB doesn't recognize cannabis as legal...
If you go look at the application,
(https://www.ttb.gov/forms/f515022.pdf), they do require you fill out:
1) "Purpose for which spirits will be used;"
2) "Purpose for which this application is filed;"
3) "List of equipment used in recovery process (include serial number, kind, capacity, name and address of manufacturer and owner of distilling apparatus, and state the intended use."
You sure could lie about all of it, but that probably isn't the smartest move for a recreational cannabis extraction company. That's all I'm saying...
710 Spirits offers 200 proof ethanol, Tax free by adding heptane as a denaturing agent. It's been approved in a few states for extraction.
This is genius and the way to do it.
I think Joe answered it for me. Since I make shatter, which might retain a very tiny bit of solvent, this is not for me, but it could be useful if applying more heat with short path or decarbing for edibles.