Since 2017, most craft producers are free of the federal bond — but not all.
What changed for brewers, vintners, and distillers
Federal alcohol excise-tax bonds — for breweries, wineries, and distilleries — are administered by the TTB (the Alcohol and Tobacco Tax and Trade Bureau), not ATF. And the big news is that since 2017, most small producers no longer need one at all. Here is exactly when a bond is still required.
The PATH Act changed everything for small producers
The PATH Act of 2015, effective January 1, 2017, exempted most small alcohol producers from the federal excise-tax bond requirement. A TTB-permitted taxpayer is exempt if it was liable for $50,000 or less in alcohol excise tax in the prior year, reasonably expects $50,000 or less this year, and pays tax on a semimonthly, quarterly, or annual basis. For distilled spirits and wine the exemption applies to nonindustrial use; beer has no such limitation. The result: the vast majority of craft breweries, wineries, and distilleries no longer need a federal bond.
When a TTB bond is still required
A bond is still required when a producer owes or expects to owe more than $50,000 a year in federal alcohol excise tax, doesn’t qualify for the exemption test, operates certain industrial-use distilled spirits or wine operations, or hits other situations TTB regulations still cover (some transfers and withdrawals, alcohol fuel plants in some cases). When required, the penal sum scales with expected tax liability per 27 CFR Parts 19 (spirits), 24 (wine), and 25 (beer). Note: exemption is only from the bond — the TTB permit, registration, and tax returns are still required, and state alcohol bonding is separate.
Frequently Asked Questions
Do I still need a federal bond for my brewery/winery/distillery?
Most small producers don’t. Since January 1, 2017 (PATH Act), you’re exempt from the federal excise-tax bond if you were liable for $50,000 or less in alcohol excise tax last year and expect the same this year. Larger producers still need one.
Is this an ATF bond?
It’s commonly called that, but federal alcohol excise-tax bonds are administered by the TTB (Alcohol and Tobacco Tax and Trade Bureau), not ATF. ATF handles firearms and explosives.
Does the exemption mean I don’t need a TTB permit?
No. The PATH Act only removed the bond for qualifying small producers. You still need your TTB permit and registration, must file tax returns, and may still have separate state alcohol bonding requirements.
How do I get a ttb alcohol bond through Cory Washington & Co.?
Request a quote or contact our team. We confirm your exact requirement, market your bond across multiple surety companies that compete for it, and handle the filing. Cory Washington & Co. LLC is licensed in all 50 states.
All surety bond descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or bonding advice. Surety bonds are not insurance. Bond requirements — including amounts, obligees, and bond forms — are set by government authorities and other obligees and change over time; the information presented is general in nature and does not guarantee the availability, terms, conditions, or amount of any bond. Actual bond terms are governed by the bond form issued by the surety and the requirements of the obligee, and any bond remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds a surety, or issues a bond. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please confirm current requirements with the relevant authority and consult directly with a licensed professional at Cory Washington & Co. LLC.