FAQs

B1:	What are the guidelines if I want to use brew-on-premises facilities that are not connected to a brewery?
B2:	How do I determine the barrel equivalent of beer containers?
B3:	Must TTB approve my operations when I intend to make beer?
B4:	If TTB must approve my operations to make beer, how do I apply?
B5:	When I have applied, can I start to make beer?
B6:	Where can I find surety (insurance) companies who may provide a bond?
B7:	How much does it cost if TTB must approve my operations to make beer?
B8:	Does TTB have the regulations and forms for beer on the Internet?
B9:	What is TTB's policy with respect to “growlers"?
B10:	What are the guidelines for a Nano brewery?

Beer FAQs - Answer

Revised: 2/21/03

B1: What are the guidelines if I want to use brew-on-premises facilities that are not connected to a brewery?
Federal Guidelines For Brew-On-Premises Facilities
These guidelines apply to a Brew-on-Premises facility that is not connected to a brewery.

1. A person may operate a "Brew-on-Premises" (BOP) business without qualifying as a brewery or paying excise tax on beer produced at the BOP by adults under the conditions outlined below. No Federal regulations currently apply to the operation of a BOP business.

2. Adults may produce beer at a BOP for personal or family use. Adults who use BOP facilities to make beer are governed by existing regulations in 27 CFR §§ 25.205 - 25.206, as follows:

• Adults must be 18 years of age (or other age required for the purchase of beer in the locality).
• Adults may jointly produce beer at a BOP provided other conditions are met. Adults may produce beer must 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 BOP for personal or family use, including use in organized affairs, exhibitions, or competitions (such as homemaker's contests or tastings).
• Home brewers may not produce beer for sale or offer their beer for sale.

3. Proprietors and employees of Brew-on-Premises facilities: May furnish space, brewing equipment, ingredients, bottling supplies, and advice and expertise to customers. They may also furnish unfermented wort to BOP customers. May provide certain assistance to customers including: Moving containers of beer between storage areas. Cleaning, maintenance, and repair of equipment. Climate and temperature control. Disposal of spent grains and wastes. Quality control (including laboratory analysis and tasting of beer for quality control purposes). May not provide physical assistance to, or on behalf of, 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. May not provide non-tax paid beer to customers or prospective customers for sampling purposes.

4. You must operate Brew-on-Premises business in compliance with State and local laws. The ability to produce beer for personal or family use and without payment of tax at a BOP under Federal law does not authorize production of beer by adults, or operation of a BOP business, in violation of state or local law.

5. Operation of a BOP business in a manner contrary to the conditions outlined may cause the facility to be considered a brewery, subject to all statutory and regulatory provisions relating to brewery operation (see item # 6).

6. Under some circumstances, a TTB qualified brewery may operate a Brew-on-Premises business. All beer produced at a BOP business on brewery premises is taxable under Federal law, must be labeled with information under 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 BOP 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.

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B2: How do I determine the barrel equivalent of beer containers?

Conversion tables for computation of taxable quantity of spirits, wine & 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.

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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.

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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

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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. 

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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

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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:

1. File annually a special occupational tax return and registration.  Payment of the tax has been suspended for brewers.  Please refer to the Special Occupational Tax renewal process for additional information.
2. 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.

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B8: Does TTB have the regulations and forms for beer on its Web site?

The brewery regulations may be found on our Regulations page.  Forms relating to the brewery industry are available on the Beer Forms page. A complete listing of all TTB forms can be found on the main Forms page. For additional information about obtaining copies of forms, please contact the TTB National Revenue Center at 1-877-882-3277.

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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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B:10 What are the guidelines for a Nano brewery?

Nano-breweries, which we define as very small brewery operations, are springing up across the country. Nano brewing is a result of the steady appeal for craft-brewed beers and the beneficiary of the growing home brewing movement.   We issue this advisory as a reminder that any beer produced for sale by home brewers is not exempt from Federal excise tax payment.   

Section 5092 of the Internal Revenue Code of 1986 (IRC) defines a brewer as a person who brews beer or produces beer for sale.  Section 5053(e) of the IRC provides an exemption from Federal excise tax payment for beer that is produced for personal or family use.

Pursuant to § 5053(e) any adult may, without payment of tax, produce beer for personal or family use and not for sale. The aggregate amount of beer exempt from tax under this subsection with respect to any household shall not exceed–

(1) 200 gallons per calendar year if there are 2 or more adults in such household, or

(2) 100 gallons per calendar year if there is only 1 adult in such household.

For purposes of this subsection, the term “adult” means an individual who has attained 18 years of age, or the minimum age (if any) established by law applicable in the locality in which the household is situated at which beer may be sold to individuals, whichever is greater.

Persons who produce beer for sale, no matter how small the amount, must qualify as a brewer under the provisions of 26 U.S.C. 5401.  In addition to paying the Federal excise tax on any beer that is removed from the brewery for consumption or sale, consumer packages must contain the government health warning statement (see 27 CFR part 16).  Further, the labeling and advertising provisions of the Federal Alcohol Administration Act, which are found at 27 U.S.C 205, may apply.  Regulations implementing § 105, as they relate to malt beverages, are set forth in part 7 of the TTB regulations (27 CFR part 7), Labeling and Advertising of Malt Beverages. 

If you have a question regarding whether your operation qualifies for the exemption as found in § 5053(e) or whether you need to complete the brewery qualification process pursuant to 26 U.S.C. 5401, please contact the TTB National Revenue Center at 1-877-882-3277 or e-mail at: ttbquestions@ttb.treas.gov.

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