[Code of Federal Regulations]
[Title 27, Volume 1]
[Revised as of April 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR22.105]

[Page 574]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 22_DISTRIBUTION AND USE OF TAX-FREE ALCOHOL--Table of Contents
 
                    Subpart G_Use of Tax-Free Alcohol
 
Sec.  22.105  Hospitals, blood banks, and sanitariums.

    (a) Tax-free alcohol withdrawn for use by hospitals, blood banks, 
and sanitariums shall be used exclusively for medicinal, mechanical 
(analysis or test) and scientific purposes and in the treatment of 
patients. The use of tax-free alcohol and of products resulting from the 
use of tax-free alcohol shall be confined to the permit premises, except 
as provided in this section and Sec.  22.102. Medicines compounded with 
tax-free alcohol on the premises of a hospital or sanitarium, for use of 
patients on the premises, may not be sold, but a separate charge may be 
made for the medicine.
    (b) A hospital, operating a clinic on premises, may withdraw tax-
free alcohol for use in the clinic, if the clinic is operated for 
charity and not for profit. Medicines compounded with tax-free alcohol 
may be dispensed to patients at a clinic for use outside of the clinic, 
if the furnishing of the medicine is not conditioned upon payment.
    (c) A hospital or sanitarium, operating a pathological or other 
laboratory on premises, may withdraw tax-free alcohol for authorized use 
in the laboratory.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214))