FAQs
Beer FAQs - Answer
Revised: 04/06/11
B1: What are the guidelines regarding brew-on-premises (“brew your own” facilities)? (04/06/11)
A brew-on-premises (BOP) is a business that provides space and equipment to the public to brew and bottle their own beer. The following Federal guidelines apply to BOPs that are not on a TTB qualified brewery. (See item #2 for information regarding BOPs on TTB qualified brewery premises.) State and local requirements may vary. Click here for contact information for State alcohol control boards.
1. Owners of BOPs
A person may establish and operate a BOP without qualifying with TTB under the conditions outlined below. Further, no Federal excise tax is imposed on beer produced by individuals at a BOP under the conditions outlined below.
Proprietors of BOPs must operate their business in compliance with State and local laws. The provision to produce beer for personal or family use and without payment of tax at a BOP under the Internal Revenue Code of 1986 (IRC, 26 U.S.C. 5053(e)) does not authorize production of beer by adults, or operation of a BOP business, in violation of any State or local law.
Proprietors and employees of BOPs may:
- Furnish space, brewing equipment, ingredients, bottling supplies, and advice and expertise to customers.
- Furnish unfermented wort to BOP customers.
- Provide certain assistance to customers, such as:
- Moving containers of beer between storage areas;
- Cleaning, maintenance, and repair of equipment;
- Climate and temperature control;
- Disposal of spent grains and wastes; or
- Quality control (including laboratory analysis and tasting of beer for quality control purposes).
Proprietors and employees of BOPs may not:
- Provide assistance to, or on behalf of, customers in the production, storage, or packaging of beer, such as:
- Fermenting mash,
- Adding sugar, CO2, or any other ingredients to beer,
- Filtering or bottling beer, or
- Providing physical assistance in the production, tank transfer, racking, or the bottling or kegging of beer.
- Produce or provide non-taxpaid beer to customers or prospective customers for sampling purposes.
Operation of a BOP 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 under Chapter 51 of the IRC and TTB regulations under 27 CFR part 25.
Proprietors of BOPs who have questions regarding what services they may or may not provide to their customers may contact the manager of the Beer Program within the Regulations and Rulings Division by telephone at (202) 453-1039, Ext. 110 or by email at BeerRegs@ttb.gov.
2. TTB Brewers Operating BOPs
Under some circumstances, a TTB qualified brewery may operate a BOP. All beer produced at a BOP on brewery premises is taxable under Federal law, must be labeled in accordance to 27 CFR part 25, must bear the Government Warning Statement required under 27 CFR part 16, and is subject to recordkeeping and other requirements.
For further information regarding qualification of a brewery or operation of a BOP at a brewery, contact the Brewery Applications Section at the National Revenue Center, Alcohol and Tobacco Tax and Trade Bureau, 550 Main Street, Room 8002, Cincinnati, OH 45202, or by:
Telephone (toll free): (877) 882-3277
Fax: (202) 453-2978
E-mail: TTBInternetQuestions@ttb.gov
3. Individuals “home brewing” at BOPs
A person producing beer at a BOP must do so in accordance to 26 U.S.C. 5053(e) and TTB regulations 27 CFR 25.205 - 25.206, which provide that:
- Adults may produce beer for personal or family use without payment of tax;
- Adults are defined as 18 years of age or older (or the age required for the purchase of beer in the locality of the BOP);
- Adults 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;
- Adults who produce beer at a BOP may remove their beer for personal or family use, including use in organized affairs, exhibitions, or competitions (such as homemaker's contests or tastings);
- Adults may collaborate with other adults in the production of beer at a BOP provided they are not considered a corporation or an association; and
- Adults may not produce beer for sale or offer their beer for sale.
Adults using BOPs should note that owners and employees of BOPs are limited in the assistance they may provide customers. It is the responsibility of BOP customers to carry out the activities that are required to brew, store, and package beer.
TTB regulations do not authorize the production of beer that is contrary to State or local law. Click here to contact State alcohol control board for more information.
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.
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: TTBInternetQuestions@ttb.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: How much does it cost if TTB approves my operations to make beer? (04/06/11)
There is no fee required to obtain a Brewer’s Notice. However, brewers must have bond coverage before beginning the business of brewing. Surety (insurance) companies charge premiums for bond coverage. There also are charges involved in the purchase of Treasury Notes, which may be used as collateral bonds. TTB will also accept collateral bonds secured by cash or other tangible assets.
IRC law and TTB regulations require sufficient bond coverage to cover authorized activities conducted on brewery premises. The minimum penal sum of a bond is $1,000. The maximum penal sum of the bond, if you will prepay the tax on beer, is not to exceed $150,000, or $500,000 if you will defer the tax and pay the tax semimonthly.
For more information on bond coverage requirements, see the TTB regulations at Subpart H of 27 CFR part 25. For questions regarding bonds you may contact the Brewery Applications Section at the National Revenue Center, Alcohol and Tobacco Tax and Trade Bureau, 550 Main Street, Room 8002, Cincinnati, OH 45202, or by:
Telephone (toll free): (877) 882-3277
Fax: (202) 453-2978
E-mail: TTBInternetQuestions@ttb.gov
B7: Where can I find surety (insurance) companies who may provide a bond?
You may obtain information on surety companies from the following web site: http://www.fms.treas.gov/c570/index.html
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.
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).
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 of the Act, 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: TTBInternetQuestions@ttb.gov.
B11: Am I permitted to label my product with a specialized farming term to show my compliance with or concern for environmental initiatives and movements?
A description of specialized farming practices generally may appear on alcohol beverage labels as additional information provided it is truthful, accurate, specific, and does not conflict with, or in any manner qualify, mandatory labeling information. However, due to the constantly evolving nature of this field, TTB reserves the right to request clarification and documented verification of any graphics, seals, logos, definitions or language appearing on labels. For instance, any label specifically stating that the producer is certified by an agricultural organization must have documented proof.
Terms that refer to the environmental impact of the process and packaging rather than the product itself are usually acceptable. These words and phrases may not modify mandatory information on brand labels, but might appear as additional information after review on a case-by-case basis.
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