Rev. Rul. 54-277

Section 3108(c) of the Internal Revenue Code provides in part that tax-free alcohol may be withdrawn from industrial alcohol plants and bonded warehouses for the use of any scientific university, college of learning, or laboratory for use exclusively in scientific research.

Trade or vocational schools which do not have a recognized curriculum, or do not confer degrees after specified periods of attendance at classes or research, or whose laboratory is not used exclusively in scientific research, are not entitled to the privilege of using tax-free alcohol in the work of training students under the provisions of section 3108(c) of the Internal Revenue Code and section 182.662 of Regulations 3 issued pursuant thereto.