Line 1: cases of distilled spirits
The total number of cases of distilled spirits. The form says a case consists of twelve 80-proof 750-milliliter bottles.
8906
Distilled Spirits Credit
- Agency
- IRS
- Revision
- 2025
- Fillable fields
- 7
- Pages
- 1
- Official source
- IRS form page
- Checked
- October 21, 2026
Form 8906: Distilled Spirits Credit
Form 8906 is used to claim the distilled spirits credit. The form and its About page say the credit is part of the general business credit, and the form says to attach it to the tax return. This page covers the 2025 form.
The form says the credit is generally figured by multiplying the number of cases of bottled distilled spirits purchased or stored during the tax year by the average tax-financing cost per case for the most recent calendar year ending before the beginning of the tax year. On the 2025 form, line 2 is preprinted with an average tax-financing cost per case of 0.29717.
The form has five lines, and its instructions are printed on the same page. You can fill it out free in your browser on this page and download the result without an account.
What's on Form 8906
Line 2: average tax-financing cost per case
Preprinted on the 2025 form as 0.29717.
Line 3: credit from cases
Line 1 multiplied by line 2.
Line 4: credit from partnerships and S corporations
Distilled spirits credit passed through from partnerships and S corporations.
Line 5: total credit
Lines 3 and 4 added together, reported on Schedule K by partnerships and S corporations, or on Form 3800, Part III, line 1n by all others.
How to fill out Form 8906
- 1
Line 1 for eligible wholesalers
The form says an eligible wholesaler enters the number of cases of distilled spirits bottled in the United States and purchased during the tax year directly from the bottler of the spirits.
- 2
Line 1 for other filers
A filer that is not an eligible wholesaler but is subject to section 5005 enters cases of bottled distilled spirits stored in a warehouse operated by, or on behalf of, a state or political subdivision, or an agency of either, for which title has not passed on an unconditional sale basis, as the form describes.
- 3
Converting other lots
For a lot not in cases of 80-proof 750-milliliter bottles, the form says to divide the liters in the lot by 9, then multiply by the stated proof over 80. Its example: ninety 500-milliliter bottles of 150-proof rum come to 9.375 cases.
- 4
Lines 2 and 3
Line 2 already shows 0.29717. Multiply line 1 by line 2 and enter the result on line 3.
- 5
Line 4
Enter credits from Schedule K-1 (Form 1065), box 15 (code AL), and Schedule K-1 (Form 1120-S), box 13 (code AL), as the form says.
- 6
Line 5
Add lines 3 and 4. The form says partnerships and S corporations report this amount on Schedule K, and all others report it on Form 3800, Part III, line 1n.
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Where it goes and what to keep in mind
Where it goes
The form says to attach it to your tax return.
General business credit
The credit is part of the general business credit. Filers other than partnerships and S corporations carry the line 5 amount to Form 3800, Part III, line 1n.
Partnership and S corporation credits
The form says filers figuring a separate credit on earlier lines also report pass-through credits on line 4, while others not using earlier lines can report them directly on Form 3800, Part III, line 1n.
Time estimates
For filers outside the individual and business estimates, the form lists 1 hr., 25 min. for recordkeeping, 12 min. for learning about the law or the form, and 13 min. for preparing and sending the form to the IRS.
Latest information
The form points to www.irs.gov/Form8906 for developments such as legislation enacted after it was published.
Related forms
3800
General Business Credit
1,921 fields, 9 pages
1065
Partner's Share of Income, Deductions, Credits, etc.
111 fields, 1 page
1120-S
Shareholder’s Share of Income, Deductions, Credits, etc.
114 fields, 1 page
1065
U.S. Return of Partnership Income
440 fields, 6 pages
1120-S
U.S. Income Tax Return for an S Corporation
390 fields, 5 pages
Who files Form 8906?
The form is attached to the tax return of the taxpayer claiming the credit. The form describes these filers.
Official sources and the blank
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Questions about Form 8906
What counts as a case on Form 8906?
The form says a case consists of twelve 80-proof 750-milliliter bottles. Other lots are converted by dividing the liters by 9 and multiplying by the stated proof over 80.
What amount is on line 2?
The 2025 form prints 0.29717 as the average tax-financing cost per case.
Does a partner or S corporation shareholder file Form 8906?
The form says taxpayers whose only source of the credit is a partnership or S corporation are not required to complete or file it, and can report the credit on Form 3800, Part III, line 1n.
Who is an eligible wholesaler?
The form says it is any person who holds a permit under the Federal Alcohol Administration Act as a wholesaler of distilled spirits and is not a state or political subdivision thereof, or an agency of either.
Where does the line 5 total go?
Partnerships and S corporations report it on Schedule K. All others report it on Form 3800, Part III, line 1n.