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Beer FAQs
Revised: 2/21/03
B1: What are the guidelines if I want to open a brew-on-premises business?
What is brew-on-premises? It is a type of brewing facility that is designed for individuals who want to produce their own beer for personal or family consumption. This type of business is know by various names such as a “Brew Your Own,” "U-Brew," "Home Brew Warehouse," etc. TTB refers to this type of business as brew-on-premises.
A person may operate a brew-on-premises business without qualifying as a brewery or paying excise tax on beer made there under the conditions outlined below. No Federal regulations currently apply to the operation of a brew-on-premises business.
Under some circumstances, a TTB qualified brewery may operate a brew-on-premises business. All beer produced at a brew-on-premises business located at a qualified brewery premises is taxable under Federal law, must be labeled with all information required by 27 CFR part 25 and with the Government Warning Statement and is subject to record keeping and other requirements. For further information regarding qualification of a brewery or operation of a brew-on-premises at a brewery, contact the National Revenue Center, Alcohol and Tobacco Tax and Trade Bureau, 550 Main Street, Room 8002 Cincinnati, OH 45202 or call toll-free at (800) 398-2282.
The following guidelines apply to a brew-on-premises facility that is not located on a TTB qualified brewery premises:
1. Adult home brewers who use brew-on-premises facilities to make beer are governed by existing regulations in 27 CFR 25.205- 25.206 (which cover production of beer for personal or family use) as follows:
- Adults must be 18 years of age to engage in home brewing (or other age required for the purchase of beer in that locality).
- Beer produced at a brew-on-premises must be for personal or family use only.
- Personal and family beer is not subject to Federal excise tax. A home brewer may produce, without payment of tax, per household, up to 100 gallons per calendar year if there is one adult residing in the household or 200 gallons of beer per year if there are two or more adults residing in the household.
- Home brewers may remove their beer from the brew-on-premises for personal or family use, including use in organized affairs, exhibitions, or competitions, such as home brewer's contests or tastings.
- Home brewers may not produce beer for sale or offer their beer for sale.
2. Proprietors and employees of brew-on-premises facilities may furnish the following to their customers:
- space,
- brewing equipment,
- ingredients,
- bottling supplies, and
- unfermented wort .
They also may provide certain assistance to customers including:
- advice and expertise,
- moving containers of beer between storage areas,
- cleaning, maintenance, and repair of equipment,
- climate and temperature control,
- disposal of spent grains and wastes, and
- quality control (including laboratory analysis and tasting of beer for quality control purposes).
3. Proprietors and employees of brew-on-premises facilities may not:
- provide physical assistance to, or on behalf of, brew-on-premises customers in the production, storage, or bottling of beer; for example, employees may not ferment mash, filter or bottle beer, add sugar or other ingredients to beer, or provide other physical assistance in producing or bottling beer.
- provide non-tax paid beer as samples to customers or prospective customers.
4. Brew-on-premises businesses must be operated in compliance with State and local laws. The ability to produce beer at a brew-on-premises facility for personal or family use and without payment of tax under Federal law does not authorize production of beer or operation of a brew-on-premises business in violation of State or local law.
5. Operation of a brew-on-premises business in a manner contrary to the conditions outlined above may cause the facility to be considered a brewery, subject to all statutory and regulatory provisions relating to brewery operation, including excise taxes.
B2: How do I determine the barrel equivalent of beer containers? Conversion
tables for computation of taxable quantity of spirits, wine & beer BEER
Barrel equivalents
of common keg and case sizes are printed in the beer regulations. Brewers must
request case equivalent computations for other sizes from the Regulations Division
in Headquarters. One barrel equals 31 U.S. Gallons.
27 CFR
25.156 Determination of tax on keg beer.
27 CFR 25.157
Determination of tax on bottled beer.
27 CFR 25.158
Tax computation for bottled beer.
B3: Must TTB approve my operations when I intend to
make beer?
If you intend to make beer for other than family or personal use, TTB must
approve your operations. Refer to the answer for limitations on making beer for personal or family use.
B4: If TTB must approve my operations to make beer, how
do I apply?
Here's what to do to apply:
Prepare and send TTB
Form 5130.10, Brewer's Notice and other forms, including TTB Form 5130.22,
Brewer's Bond.
To request a packet
with all required forms and instructions:
TTB National Revenue
Center
8002 Federal Office Building
550 Main Street
Cincinnati, OH 45202-3263
(513) 684-2238
Toll Free: 800-398-2282
Fax: 513-684-2241
E-mail to: ttbquestions@ttb.treas.gov
B5. When I have applied, can I start to make beer?
No. TTB must approve
your operations before you begin to make beer. TTB may initiate an on-site
inspection of the proposed premises and operations.
B6. Where can I find surety (insurance) companies who may provide a bond?
You may
get information on surety companies from the following web site: http://www.fms.treas.gov/c570/index.html
B7: How much does it cost if TTB must approve my
operations to make beer?
There is
no "fee" for a brewery application. However, you must:
·
Pay annually a special occupational tax at the rate of $1,000 or $500 for a
reduced rate taxpayer. Refer to the beer regulations in Part 25 of Title 27
CFR for an explanation of the rates.
·
Have bond coverage. Bond coverage must be sufficient to cover authorized activities.
The minimum penal sum of a bond is $1,000. The maximum penal sum of the bond
is not to exceed $150,000 if you will prepay the tax on beer, or $500,000 if
you will defer the tax and pay the tax semimonthly. Refer to the beer regulations
in 27 Code of Federal Regulations Part 25 on the amount of coverage needed
for your operations.
B8: Does TTB have the regulations and forms for beer
on the TTB web site on the Internet?
The
brewery regulations may be found at: http://www.ATF.gov/regulations/27cfr25.htm.
A limited number of brewery related forms are available
at TTB's: www.ttb.gov/forms/index.shtml . TTB is in the process of placing all TTB forms on
its web site. If you cannot find a particular TTB
form, contact the TTB National Revenue Center at 800-398-2282,
or the TTB Distribution Center 703-455-7801.
B9: What is TTB's policy with respect to “growlers"?
What is a “growler?”
A “growler” is a large container that we may consider as either a large glass or as a bottle. These containers are usually about a ½ gallon, but may be smaller. Some States place restrictions on removal of beer from brewpubs in ½ gallon growlers.
What are the concerns for filling a “growler?”
A growler is either a bottle or a large glass. The distinction is solely dependent on the manner in which the brewer fills the container.
When is a growler a “bottle?”
A growler is a bottle when the brewer fills the container in advance of sale. The brewer may fill the growler prior to removal, on the brewery premises, or after tax determination on the brewpub premises.
When is a growler a “large glass?”
A growler is a large glass when a consumer uses the container to make a purchase and the brewer then fills the container. Consumers may furnish their own growler or may purchase it from the brewer.
When is tax determined on beer used to fill growlers?
There are two conditions for tax determination (please refer to §§25.25(c), 25.157, and 25.158).
- If the brewer fills a “bottle” on the brewery premises, the tax is determined upon removal for consumption or sale. Since the growler is a bottle, tax is determined on the stated net contents.
- If the brewer fills a “glass” on the brewpub premises, the brewer must fill it from a tank that is tax determined.
What are the labeling requirements for growlers?
When you are required to label your growler you should note that the label must contrast with the background. If you silkscreen your containers, the ink colors must contrast with the filled containers.
What are the requirements for the government warning label?
The Alcoholic Beverage Labeling Act (ABLA) of 1998 applies to sealed containers the brewer offers for sale to consumers. The ABLA does not apply to glasses or containers a brewer uses to serve beer at the brewpub. These containers do not meet the definition for a sealed container in which an alcohol beverage is offered for sale to the public.
However, the law applies to any keg or serving tank from which the brewer dispenses beer to containers. The brewer must apply a government warning label to the keg or tank. The brewer must comply with 27 CFR Part 16 regardless of whether the public has view of the keg or tank.
The statement must comply with these conditions.
- It must be legible under ordinary conditions, and on a contrasting background.
- The words “GOVERNMENT WARNING” must be in capital letters and bold type. The rest of the statement may not appear in bold type.
- The maximum number of characters per inch of the warning statement is 25. All characters, including both upper and lower case, must be a minimum 2 millimeters in size.
What are the requirements for growlers that are “glasses?”
When the brewer fills a growler at the tap at the brewpub, and not in advance of sale, we consider the growler as a large glass sold at retail. These growlers are not subject to Federal labeling requirements. Some States consider this bottling activity and regulate accordingly. Brewers should check with State authorities.
What are the requirements for growlers that are “bottles?”
When the brewer fills on the brewery premises or on the brewpub in advance of sale, the growler is a bottle subject to labeling requirements of 27 CFR Part 16 and 27 CFR Part 25. In some States the requirements of 27 CFR Part 7 also apply.
Since growlers may be considered bottles we recommend that brewers silkscreen or label their growlers with all of the mandatory label information to avoid potential problems with growlers the brewer might subsequently refill under conditions that we would consider bottling. (See § 25.142 and 27 CFR Part 16.)
What is the mandatory label information?
You must label your beer with this information:
Brewer name or trade name
Place of production – the place of production is the city, and, if necessary for identification, the state. The place of production must appear in direct conjunction with your name or trade name. If you operate more than one brewery you must choose one of these options:
- Show all brewery locations on the label
- Show the place of production on the label
- Show your principal place of business on the label
In the event that you select to show all your locations or your principal place of business, rather than the place of production, you must also mark your label with a code to show which location actually produces the beer.
Net contents – show net contents as ½ gallon. You may use “64 ounces” in addition to but not in place of “½ gallon.”
Do not make a statement as to payment of internal revenue taxes.
Government warning label – use the guidelines above (see 27 CFR Part 16).
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