TTB Brewer's Bond: When Federal Law Still Requires Your Brewery to Be Bonded
For most small craft breweries, the answer to "do I need a TTB brewer's bond?" is now no. Federal law changed in 2017 and was made permanent in 2020, exempting breweries with federal excise tax liability under $50,000 per year from the bond requirement. That removed roughly 90 percent of U.S. craft breweries from the bond pool. If your annual federal excise tax bill runs above the $50,000 threshold, though, you still need a TTB brewer's bond. This page is for you.
Surety Bond Authority has been writing surety bonds since 1971. We work with federally approved markets that handle TTB brewer's bonds. If you already know your federal excise tax liability and your bond amount, get a free quote online or call us at 800-333-7800.
What a TTB Brewer's Bond Actually Is
A TTB brewer's bond is a federal surety bond posted in favor of the Alcohol and Tobacco Tax and Trade Bureau (TTB) by a permitted brewery. It guarantees the payment of federal excise taxes on the beer your brewery produces and removes from bond (the term TTB uses for moving beer out of bonded storage for sale or consumption). If the brewery fails to pay the excise tax, the TTB can collect from the surety up to the bond limit.
In plain English: the federal government wants assurance that the excise tax money will be there when it is due. The bond is the assurance.
Who Has to Carry One in 2026 (The CBMA Exemption)
The Craft Beverage Modernization Act (CBMA), part of the PATH Act of 2015 and effective January 1, 2017, eliminated the bond requirement for any TTB-permitted brewery, distilled spirits plant, or winery that meets all three of the following conditions:
- Reasonably expects to be liable for not more than $50,000 in federal excise taxes on beer (or other taxable alcohol) for the current calendar year, AND
- Was liable for not more than $50,000 in such federal excise taxes during the preceding calendar year, AND
- Pays federal excise taxes on a semi-monthly, quarterly, or annual schedule
The CBMA's $50,000 threshold is calculated by combining federal excise tax liability across all locations and all alcohol categories the brewery produces. A small craft brewery with two taprooms in different states would combine the federal excise tax liability across both locations.
If you fall under the threshold, congratulations, no bond required. If you cross it (or expect to in the current calendar year), you need to file a brewer's bond.
How the Bond Amount Is Calculated
The brewer's bond amount is tied to the federal excise tax liability the brewery expects to carry during a given period. The TTB calculates the required bond as the amount of federal excise tax expected to accumulate during the longest period the brewery is allowed to defer payment, which for most brewers is up to about a month of liability.
The bond amount has a regulatory floor of $1,000 and a ceiling of $150,000. For a production brewery operating above the CBMA threshold, the bond typically falls somewhere in the middle of that range, sized to roughly one tax period of expected liability.
Form 5130.22 and the Filing Process
Brewer's bonds are filed with the TTB on Form 5130.22 (Brewer's Bond) at the time of permit application, or with Form 5130.10 for changes to an existing bond. The bond is executed by both the surety and the brewery and runs in favor of the TTB. New breweries usually file the bond as part of the permit application; existing breweries crossing the $50,000 threshold file the bond before reaching the bond-required level of production.
The surety writing the bond must be approved for federal undertakings, meaning it must appear on the U.S. Treasury's Listing of Approved Sureties. We work with markets that are Treasury-listed and that write TTB bonds regularly.
State Alcohol Tax Bonds Are a Separate Requirement
The TTB brewer's bond is a federal requirement. It does not replace the state-level alcohol tax bonds many states require for brewery operations. If you operate in Ohio, Washington, Minnesota, Montana, or Alabama (among others), there are state alcohol tax bonds that run in addition to the federal TTB bond. A growing production brewery often needs both. We can place both the federal TTB bond and the state-level alcohol tax bonds in one application process, which saves a meaningful amount of administrative time.
How to Get a TTB Brewer's Bond Through Us
The process is straightforward. We collect information about your brewery (production volume, federal excise tax history, expected calendar-year liability), pull underwriting through one of our Treasury-listed markets, and place the bond on Form 5130.22 in a form the TTB will accept. For an existing brewery with clean operations, the bond can usually be placed within a few business days. New permit applicants going through TTB's permit process for the first time should plan on a longer cycle.
Frequently Asked Questions
Do small craft breweries still need a TTB brewer's bond?
Most don't. Under the Craft Beverage Modernization Act, breweries with federal excise tax liability of $50,000 or less in both the prior calendar year and the current calendar year are exempt. Breweries above the threshold still need to file the bond.
What is the minimum TTB brewer's bond amount?
The regulatory floor is $1,000 and the ceiling is $150,000. For a production brewery above the CBMA exemption threshold, the bond is sized to roughly one tax period of expected federal excise tax liability.
Do I combine multiple locations when calculating the $50,000 threshold?
Yes. The CBMA threshold applies to your combined federal excise tax liability across all locations and all alcohol categories you produce. Wineries and distilleries operating under the same ownership also aggregate.
What form do I use to file a brewer's bond?
Form 5130.22 (Brewer's Bond) is the federal form. Changes to an existing bond use Form 5130.10. Both are filed with the TTB.
Does the TTB brewer's bond cover state alcohol taxes?
No. The TTB bond covers federal excise taxes only. State alcohol tax bonds are separate filings with the relevant state agency, and many production breweries need both.
How much does a TTB brewer's bond cost?
The premium depends on the bond amount and the brewery's financial picture. We will quote your specific situation. Call us at 800-333-7800.
Get Your TTB Brewer's Bond
If your brewery crosses the CBMA exemption threshold and needs to file a TTB brewer's bond, Surety Bond Authority can place the bond with a Treasury-listed market that handles them. We have been writing surety bonds since 1971 and we work with federally approved carriers nationwide. Get a free quote online or contact us, and one of our specialists will walk through your situation.