Booze used to make hand sanitizer might be free from taxes under the coronavirus stimulus bill, as breweries and vodka makers ditch beer for sanitizing gels

titos vodka

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Tito's vodka is one alcohol producer that has started making hand sanitizer.

  • The Senate passed a $2 trillion stimulus package to stabilize the American economy during the coronavirus outbreak.
  • A section of the bill states that alcohol companies are temporarily exempt from excise taxes on alcohol used to make hand sanitizer.
  • The bill still needs to be passed by the House of Representatives before President Donald Trump can sign it into law.
  • Tito's vodka recently announced that it plans to make an initial 24 tons of its own hand sanitizer that it will give away for free to those who need it.
  • Visit Business Insider's homepage for more stories.

Companies that are using alcohol to produce hand sanitizer in the US could become temporarily exempt from paying excise taxes on that alcohol, per a section in the $2 trillion stimulus package that was just passed by the United States Senate.

A section of the bill, which is meant to stabilize the American economy during the coronavirus outbreak, states that alcohol companies that are making hand sanitizer are do not have to pay excise taxes on that alcohol between December 31, 2019 and January 1, 2021.

The exemption applies to hand sanitizer that is "produced and distributed in a manner consistent with any guidance issued by the Food and Drug Administration that is related to the outbreak of virus SARS-CoV-2 or coronavirus disease 2019 (COVID-19).''

The bill still needs to be passed by the House of Representatives before President Donald Trump can sign it into law.

Hand sanitizer has been selling out in stores nationwide for the last month. In response, various breweries and distilleries have shifted their focus from booze to sanitizer.

Tito's vodka recently announced that it plans to make an initial 24 tons of its own hand sanitizer that it will give away for free to those who need it. The announcement came after the brand issued a warning several weeks ago that its vodka cannot be used as a disinfectant replacement.

Get the latest coronavirus analysis and research from Business Insider Intelligence on how COVID-19 is impacting businesses.

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