FAQ on Beer Tax: I understand that I may be eligible for a reduced rate of tax on beer that I "produce." What activity counts as "produced"?
During our recent Boot Camp for Brewers webinar on records, reports, and tax returns, we received several questions on what qualifies as “produced” for the purposes of the reduced beer tax rate.
For purposes of taking the Craft Beverage Modernization Act (CBMA) reduced rate of tax, beer is considered to have been “produced” if it is lawfully brewed or produced at a qualified brewery premises, including beer brewed by fermentation or produced by the addition of water or other liquids during any stage of production. The entire volume of beer to which water or other liquids had been added will be considered “produced” for purposes of applying the reduced tax rates. Blending or combining two beers does not count as production for purposes of the reduced tax rate.
Beer received in bond in containers and subsequently removed subject to tax, without any production activity occurring, is not eligible for a reduced tax rate. Beer received in bond and merely bottled is also not eligible for a reduced tax rate. The eligibility for the reduced rate is also subject to controlled group and single taxpayer rules in 26 U.S.C. 5051(a)(5), which may further limit the brewer’s application of the reduced rate.
See FAQ TR-B1.
Permits Online: What Happens After You Submit?
 If you have recently submitted an application through Permits Online, you may be wondering “what happens next?” After you've submitted your application package, including all required documents, here is what happens next:
- We assign the application to a processing specialist for a detailed review.
- We review the application package for completeness and accuracy and determine the eligibility of the applicant.
- If the application package is approved, we will send you notification by email that your application is approved.
- You may then log in and view or print your approval documents including your TTB permit, registration, or notice.
How long will it take? Check our Permit Processing Times page to get an idea!
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