Tax & Customs
Brewer's Bond
A federal bond a brewery files with the Alcohol and Tobacco Tax and Trade Bureau (TTB) to guarantee payment of federal beer excise tax.
- Required by
- Alcohol and Tobacco Tax and Trade Bureau (TTB)
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond promises the United States, through the TTB, that the brewer will pay the federal excise tax on the beer it removes from the brewery. If the brewer fails to pay, the TTB can claim on the bond. The brewer must repay the surety for any claim paid.
Who needs it
- Breweries and brewpubs that expect $50,000 or more in federal excise tax a year
- Brewers that do not qualify for, or have not applied for, the bond exemption
What the underwriter looks at
- Expected federal excise tax
- Owner's personal credit
- Brewery financial statements
- Production volume
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
Do small breweries need this bond?
Since January 1, 2017, a brewer that owed less than $50,000 in federal excise tax last year and expects less than $50,000 this year can operate without a bond. You must tell the TTB and get approval first, and an existing bond stays in place until then.
Will my state require a bond too?
Often yes. States set their own alcohol tax bonds. Florida, for example, sets a $20,000 default for brewers, which the state can reduce to $10,000.