TTB Brewer’s Bond Requirements and Small Brewer Exemption Under 26 U.S.C. 5551(d)

TTB Brewer’s Bond Requirements and Small Brewer Exemption | CraftComply
Brewery Federal Bond Compliance

TTB Brewer’s Bond Requirements and Small Brewer Exemption Under 26 U.S.C. 5551(d)

TTB Brewer’s Bond is the federal excise tax bond every US brewery must post — with a defined exemption for small brewers. Filed on TTB Form 5130.22, the Brewer’s Bond secures federal excise tax obligations under 26 U.S.C. Chapter 51 and 27 CFR Part 25. Under 26 U.S.C. 5551(d), brewers reasonably expected to be liable for $50,000 or less in federal excise tax in the current calendar year (and who were liable for $50,000 or less in the prior year) qualify for the small brewer bond exemption. This guide covers Brewer’s Bond amounts, the small brewer exemption qualification, when the exemption is lost, and the interaction with the Brewer’s Notice qualification framework under 27 CFR Part 25.

Key Takeaway

TTB Brewer’s Bond is the federal excise tax bond required under 26 U.S.C. Chapter 51 and 27 CFR Part 25 for US brewers, filed on TTB Form 5130.22. The bond secures the brewer’s federal excise tax obligations to the United States — a surety company or approved collateral posts the bond guaranteeing tax payment. Under 26 U.S.C. 5551(d), a small brewer bond exemption is available: brewers who reasonably expect to be liable for $50,000 or less in federal excise tax in the current calendar year, and who were liable for $50,000 or less in the prior calendar year, qualify for the exemption and do not need to post a Brewer’s Bond. Small brewer bond exemption qualification is confirmed at Brewer’s Notice application on TTB Form 5130.10. Loss of the exemption — when tax liability crosses the $50,000 threshold — requires the brewer to post a bond promptly. Bond amounts for non-exempt brewers depend on tax liability. Brewer’s Bonds are continuous obligations; changes in ownership, control, or brewery premises trigger bond amendment or replacement.

TTB F 5130.22
Brewer’s Bond form
$50,000
Small brewer exemption threshold (26 U.S.C. 5551(d))
27 CFR Part 25
Brewery federal compliance framework

Why the Brewer’s Bond Exists and Who Needs to Post One

The Brewer’s Bond is a federal excise tax bond required under 26 U.S.C. Chapter 51 (Internal Revenue Code alcohol tax provisions) and 27 CFR Part 25 (TTB brewery regulations). Its purpose is to secure the brewer’s federal excise tax obligation to the United States. A surety company (or, in some cases, approved collateral) posts the bond as a financial guarantee that the brewer will pay excise tax on beer removed tax-determined from the brewery.

Historically, every US brewer was required to post a Brewer’s Bond as part of Brewer’s Notice qualification. Small brewers found the bond burden disproportionate to their tax liability. Congress addressed this through the small brewer bond exemption at 26 U.S.C. 5551(d). Under the exemption, brewers who reasonably expect to be liable for $50,000 or less in federal excise tax in the current calendar year, and who were liable for $50,000 or less in the prior calendar year, don’t need to post a Brewer’s Bond.

The exemption is claimed at Brewer’s Notice qualification. On TTB Form 5130.10, the applicant certifies expected federal excise tax liability and either claims the small brewer exemption or indicates bond arrangement. The certification is made in good faith based on projected production and applicable federal excise tax rates — including Craft Beverage Modernization Act rates that reduced per-barrel federal excise tax for qualifying small brewers.

Loss of the small brewer exemption is a real risk brewers must monitor. If a brewer’s actual tax liability approaches or crosses the $50,000 threshold — through production growth, portfolio changes, or CBMA rate scaling — the brewer must post a Brewer’s Bond before the exemption is lost. Failure to post a required bond creates federal excise tax exposure and Brewer’s Notice compliance risk. The threshold review happens on a calendar-year basis and is one of the highest-leverage federal compliance monitoring items for growing craft breweries.

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Federal Excise Tax Bond

TTB Form 5130.22 securing the brewer’s federal excise tax obligations under 26 U.S.C. Chapter 51.

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$50,000 Threshold

Small brewer exemption under 26 U.S.C. 5551(d) for reasonably expected annual federal excise tax at or below $50,000.

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Claimed at Brewer’s Notice

Exemption claimed on TTB Form 5130.10 with certification of expected tax liability.

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Exemption Loss Monitoring

Growing craft brewers must monitor actual tax liability against threshold and post bond before exemption is lost.

The 8-Step Brewer’s Bond Setup and Small Brewer Exemption Workflow

Whether posting a Brewer’s Bond or claiming the small brewer exemption, the setup workflow follows a consistent pattern at Brewer’s Notice qualification.

1

Project Federal Excise Tax Liability

Estimate expected annual production in barrels and apply the applicable federal excise tax rate — standard rate under 26 U.S.C. 5051 or CBMA reduced rate for qualifying small brewers on qualifying volumes. Project against the $50,000 threshold.

2

Determine Exemption Eligibility

Confirm that reasonably expected federal excise tax liability in the current calendar year is $50,000 or less AND that liability in the prior calendar year (if applicable) was $50,000 or less. Both conditions apply.

3

If Exempt: Claim Exemption on Form 5130.10

In the Brewer’s Notice application on TTB Form 5130.10 filed through Permits Online, claim the small brewer bond exemption with certification of expected tax liability.

4

If Not Exempt: Determine Required Bond Amount

Consult TTB guidance and 27 CFR Part 25 for bond amount requirements based on projected tax liability. Bond amounts scale with liability; specific bond amount formulas are set in TTB regulations.

5

Secure a Surety Bond

Work with a licensed surety company to secure a Brewer’s Bond on TTB Form 5130.22. Surety underwriting typically requires financial statements, ownership information, and other business documentation.

6

Submit Bond With Brewer’s Notice

File TTB Form 5130.22 with the Brewer’s Notice application through Permits Online. Bond documentation moves through TTB with the underlying qualification.

7

Monitor Threshold in Ongoing Operations

Track actual federal excise tax liability against the $50,000 threshold on a calendar-year basis. As production and tax liability scale, monitor exemption viability.

8

Post Bond Before Exemption Loss

If projected or actual tax liability approaches the threshold, work with a surety to post a Brewer’s Bond before the exemption is lost. Amend the Brewer’s Notice accordingly.

Brewer’s Bond Compliance Layers

Brewer’s Bond compliance touches multiple federal brewery compliance layers — Brewer’s Notice qualification, federal excise tax filings, CBMA rate qualification, and bond amendment.

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Brewer’s Notice Qualification

TTB Form 5130.10 qualifies brewery operations under 27 CFR Part 25.

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Federal Excise Tax Return

TTB Form 5000.24 filed on tax cadence (quarterly or semi-monthly).

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CBMA Rate Qualification

Craft Beverage Modernization Act reduced rates for qualifying small brewers on qualifying volumes.

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Brewer’s Report of Operations

TTB Form 5130.9 documenting production, tax determination, and inventory.

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Bond Amendment on Change

Changes in ownership, control, or premises trigger bond amendment or replacement.

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Threshold Monitoring

Calendar-year review of actual tax liability against exemption threshold.

Monitor Brewer’s Bond Threshold Alongside Federal Filings

CraftComply’s Renewal Workflow & Calendar tracks Brewer’s Bond dates, Brewer’s Notice amendments, federal excise tax filing cadence, and CBMA rate assignment renewals in one place — with alerts when actions come due.

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Where Brewer’s Bond Compliance Fails

Brewer’s Bond compliance failures cluster around exemption loss monitoring and Brewer’s Notice qualification errors.

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Exemption Loss Not Monitored

Growing brewer crosses the $50,000 threshold without posting a bond. Federal excise tax exposure and Brewer’s Notice compliance risk.

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CBMA Rate Miscalculation

Federal excise tax liability projection misapplies CBMA rates. Exemption claimed when threshold actually exceeded.

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Bond Renewal Missed

Continuous bond requires monitoring. Lapsed bond creates federal excise tax exposure.

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Bond Not Amended on Ownership Change

Change of ownership or control not reflected in bond documentation. Brewer’s Notice amendment triggers bond action.

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Bond Amount Insufficient

Bond amount not scaled to actual tax liability. Insufficient bond coverage flagged in TTB compliance visits.

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Brewer’s Notice Not Amended

Exemption claim change or bond change not reflected in Brewer’s Notice amendment under 27 CFR 25.71–25.79.

How CraftComply Supports Brewer’s Bond Compliance

CraftComply supports the records and workflows around Brewer’s Bond compliance — Brewer’s Notice records, bond documentation, federal filing cadences, and CBMA rate assignments.

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Federal Qualification Records

Brewer’s Notice records, bond documentation, and amendment history in one system.

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Renewal Workflow & Calendar

Brewer’s Bond dates, Brewer’s Notice amendment deadlines, federal filing cadences, and CBMA renewals in one calendar.

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Custom Fields & Reports

Custom fields for federal excise tax liability tracking and threshold monitoring reports.

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AI-Powered Document Import

Parse Brewer’s Notice documents, bond documentation, and federal filings into structured records.

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Team Collaboration

Compliance, finance, brewhouse, and outside counsel share a single source of truth on federal bond compliance.

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SOP & Policy Compliance Management

Bond monitoring procedures, exemption qualification procedures, and threshold review procedures documented with version history.

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State Registration Guide

State brewery licensing and state excise tax compliance alongside federal bond compliance.

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Brand & Product Registration

Products supported by the Brewer’s Notice with federal excise tax attribution.

TTB Brewer’s Bond — Frequently Asked

What is a Brewer’s Bond?

A Brewer’s Bond is a federal excise tax bond required under 26 U.S.C. Chapter 51 and 27 CFR Part 25. It secures the brewer’s federal excise tax obligations to the United States, filed on TTB Form 5130.22.

Who qualifies for the small brewer bond exemption?

Brewers who reasonably expect to be liable for $50,000 or less in federal excise tax in the current calendar year, and who were liable for $50,000 or less in the prior calendar year (if applicable), qualify under 26 U.S.C. 5551(d).

How is Brewer’s Bond exemption claimed?

The exemption is claimed at Brewer’s Notice qualification on TTB Form 5130.10 through Permits Online. The applicant certifies expected federal excise tax liability and either claims the small brewer exemption or indicates bond arrangement.

What happens if a brewer’s tax liability crosses $50,000?

The small brewer exemption is lost. The brewer must post a Brewer’s Bond on TTB Form 5130.22 before the exemption is lost — meaning proactive monitoring of tax liability is essential for growing brewers.

How is Brewer’s Bond amount calculated?

Bond amounts for non-exempt brewers depend on federal excise tax liability. TTB regulations under 27 CFR Part 25 provide bond amount frameworks. Surety companies underwriting the bond apply the applicable framework based on the brewer’s specific tax profile.

Do CBMA rates affect exemption eligibility?

Yes. CBMA reduced federal excise tax rates lower per-barrel tax for qualifying small brewers, extending the effective production volume that fits under the $50,000 exemption threshold. CBMA rate assignment is central to tax liability projection.

Is the Brewer’s Bond a one-time filing?

No. Continuous. The bond remains in force while the brewery operates under its Brewer’s Notice. Bond renewals, premium payments, and amendments follow the surety’s terms and TTB requirements.

What triggers Brewer’s Bond amendment?

Changes in ownership, control, brewery premises, or operational scope typically trigger bond amendment or replacement. Amendments to the underlying Brewer’s Notice under 27 CFR 25.71–25.79 often surface companion bond actions.

What is TTB Form 5130.22?

TTB Form 5130.22 is the Brewer’s Bond form — the surety bond document required by TTB for non-exempt brewers. Filed with the Brewer’s Notice application on TTB Form 5130.10.

Can I use collateral instead of a surety bond?

TTB regulations under 27 CFR Part 25 provide for approved collateral in specific circumstances as alternatives to conventional surety bonds. Most brewers use surety bonds through licensed surety companies. Consult TTB or qualified counsel on collateral alternatives.

What is the interaction with state excise tax bonds?

State brewery licensing frequently requires separate state excise tax bonds. Federal Brewer’s Bond and state bonds operate independently — one doesn’t substitute for the other. Each state’s framework varies.

How does the Brewer’s Bond affect a brewery M&A?

In stock deals the bond continues under the same entity. In asset deals the buyer typically needs its own bond arrangement in place before operating. Bond amendments in ownership-change scenarios need coordination with TTB and the surety.

Track Brewer’s Bond Compliance Alongside Federal Filings

CraftComply’s Renewal Workflow & Calendar tracks Brewer’s Bond, Brewer’s Notice, federal excise tax filings, and CBMA rate assignments across the operation. Free plan available; paid plans scale with your operations.

Compliance & Regulatory Disclaimer

The information on this page is provided for general informational purposes only and does not constitute legal, tax, or regulatory advice. Brewer’s Bond requirements under 26 U.S.C. Chapter 51, the small brewer bond exemption under 26 U.S.C. 5551(d), federal excise tax rates including CBMA rates, and brewery federal compliance under 27 CFR Part 25 are fact-specific and subject to ongoing regulatory developments. Always consult qualified beverage alcohol counsel, tax advisors, and brewery compliance professionals when structuring bond arrangements or projecting exemption eligibility. CraftComply is a compliance management platform and does not underwrite bonds or file TTB documents on your behalf.