The Domestic Brewery License

Montana recognizes three types of domestic breweries. The term domestic brewery means a microbrewery, small brewery, and a large brewery throughout the rest of this page unless otherwise specified:

1. Microbrewery: produces less than 200 barrels annually.
2. Small brewery: produces between 200 and 60,000 barrels annually.
3. Large brewery: produces more than 60,000 barrels annually.

Note: The barrel limit is calculated according to the state’s fiscal year, July 1 through June 30.

Any domestic brewery licensed in the state may own, lease, maintain, and operate a department-approved storage depot in any city or town in Montana. Breweries may use the depots for receiving, handling, storing, selling, and distributing its beer. They may not use storage depots for manufacturing or consumption.

Provide a certificate of label approval (COLA) from the TTB for each brand of beer to be manufactured, if applicable. TTB label approvals will not delay the processing of your application.

A Montana brewery that has an annual nationwide production of less than 10,000 barrels is exempt from the CARD label approval process unless the beer is more than 8.75% alcohol by volume (abv) but not more than 14% abv, even if the product will only be sold in a sample room.

Label approvals must be filed online through TAP after approval of your application. For more information regarding TTB COLA visit the U.S Department of the Treasury's website.

Note: Beer over 8.75% abv may be considered liquor depending on how the beer is produced, and beer over 14% abv is considered liquor in Montana. Liquor must follow the distilled spirits product and labeling approval process. Liquor may not be sold or served in the sample room and must go through the state liquor warehouse.

Provide a floor plan that includes but is not limited to the following: the business name, physical address, license number (if known), alcohol storage area(s), drive-through window (if applicable), sample room (if applicable), manufacturing area, external dimensions, entryways, and any patio or deck area (if applicable).

Do not send in the original blueprints or architect drawings, and only submit an 8½″ x 11″ size copy of the floor plan. See the Floor Plan webpage for more details.

When applying for a domestic brewery license, provide the following financial information showing the “intent to purchase” the alcoholic beverage license, inventory, and building, if applicable.

Note: Do not exchange funds for the alcohol beverage license (if applicable) beyond earnest money of 5 percent of the license price without prior CARD TA or license approval.

• Copies of any loan agreements, contracts, notes, and all related security agreements, guarantees, and trust indentures.
• If funds come from somewhere other than a loan, the last 6 months of bank statements from the bank account you are using to pay for the alcoholic beverage license, building, and/or start-up operating funds for the business.
• Copies of lease, rent, purchase options, financing agreements, or other evidence showing possessory interest in the building.
• Financial statements, such as a balance sheet, income statement, or tax return for the business. If it is a new business, projected balance sheet and income statements are acceptable.
• Copy of business’s bank signature card.
• Purchase/transfer documents for the alcoholic beverage license, such as a buy/sell agreement, contract for deed, warranty deed, and bill of sale, if applicable.

Other sources of funding

File the Non-Institutional Loan (NIL) Form (PDF) with the application if any lenders or other sources of financing are not state or federally-regulated financial institutions, including gifting statements.

Each NIL also requires a Personal Criminal History Statement Form, plus two fingerprint cards and fees.

When applying for a domestic brewery license, provide the following ownership information (based on the entity type applying), including:

• Copy of partnership agreement documentation.
• Copy of articles of incorporation and amendments or addenda.
• Copy of bylaws and amendments or addenda.
• Copy of certificate of fact (for LLCs and LLPs).
• LLC organizational information.
• Copy of stock certificates, corporate minutes, and attachments.
• Stock ledger or register.
• Copy of certificate of existence (for in-state corporations).
• Copy of authority to conduct business in Montana (for out-of-state corporations).
• Copy of documentation from the Secretary of State verifying approved assumed business name (ABN).
• Copy of federal employer identification number (FEIN) verification from IRS.
• Completed Personal Criminal History Statement Form for each individual with 15% or more ownership interest in the business, plus two fingerprint cards and fees for each of those individuals.

When applying for a domestic brewery license, provide the following management information:

• Location Manager Form (if someone other than an owner over 15% is managing the business).
• Personal Criminal History Statement Forms for each location manager.
• Two fingerprint cards and fees for each location manager.

It is the responsibility of the applicant to contact local building, health, and fire code officials to schedule inspections. CARD may not approve an application until local officials have given notice that the licensed premises meet their requirements, and until a background check of the applicant(s) and a premises inspection is conducted so CARD can verify the applicant(s) and location meet suitability requirements.

For the purposes of production reporting and calculating taxes owed, a brewer who has produced 5,000 barrels of beer or less in the preceding year will begin the next year at the $1.30 per barrel tax rate. The quarter after the brewer exceeds a production increment, the per barrel tax rate will increase to the next production increment amount.

Example: If the 5,001st barrel is produced in the first quarter, the tax rate will be $1.30 for the first quarter. The per barrel tax rate will increase to $2.30 beginning with the second quarter and will continue at that rate for the remainder of the year or until the quarter after the next production increment is exceeded.

A brewery that has produced 10,001 barrels of beer or more in the preceding year will begin the next year at the $4.30 per barrel tax rate. This includes new breweries that produce more than 10,000 barrels in the first month of the year. All the brewery’s production will be taxed at the $4.30 per barrel tax rate for the year.

A brewery must notify both the department and its wholesalers, in writing, by the end of the quarter when a production increment is exceeded, resulting in the brewery moving to the next production increment.

Need help filing any of these forms?

Contact the DOR Business and Income Tax Examiner at (406) 444-0723 or email CARD at DORCARDEducation@mt.gov.

Licensed microbreweries (less than 200 barrels) may:

• Provide ONLY FREE samples between 8 a.m. and 2 a.m. at the licensed premises in an approved sample room. You may not charge for those beer samples.
• Sell prepared servings for off-premises consumption between 8 a.m. and 2 a.m. See the Prepared Servings — Cocktail, Beer, and Wine To Go Page.
• Sell products in original packaging (including growlers and crowlers) for off-premises consumption at the premises in an approved sample room, at an approved curbside area, or a drive-through window between 8 a.m. and 2 a.m.
• Sell and deliver beer to wholesalers, licensed retailers, and the public using their own trucks, equipment, and employees, within the delivery limits described below.
• Ship products outside of Montana but must adhere to the receiving state laws.

Microbrewery delivery limits

Individual deliveries, other than draught beer, are limited to the case equivalent of 8 barrels a day to each licensed retailer, and the total amount of beer sold or delivered directly to all retailers may not exceed 10,000 barrels a year.

Deliveries may also include a retailer’s approved noncontiguous storage area located within 10 miles of the licensed premises. How do you know if they have one? A license will be issued with approved non-contiguous storage information listed on the front of it. You can also look up a license on the TransAction Portal (TAP) to see if a licensee has an approved noncontiguous storage area.

Licensed small breweries (200–60,000 barrels) may:

• Serve samples for on-premises consumption, as described below.
• Provide no more than 2,000 barrels annually for on-premises consumption, including all affiliated manufacturers in approved sample room(s).
• Sell prepared servings for off-premises consumption between 10 a.m. and 8 p.m. (prepared servings [drinks to go] count towards sample room limits).
• Sell beer in original packaging (including growlers and crowlers) for off-premises consumption at the premises in an approved sample room, at an approved curbside area, or a drive-through window between the hours of 8 a.m. and 2 a.m.
• Sell and serve non-alcoholic (NA) type products in their approved sample room if they are not over .5% abv.
• Sell beer at a discounted rate to non-profit organizations, individuals, and special permit holders so long as you do not violate any existing distributor agreements.
• Sell and deliver beer to wholesalers, licensed retailers, catered events, special permit holders, and the public using their own trucks, equipment, and employees, within the delivery limits described below.
• Sell and serve collaboration beers in their approved sample room, subject to the collaboration rules described below.
• Apply for a Brewery Storage Depot to store products.
• Ship products outside of Montana but must adhere to the receiving state laws.

Sample room service

Small breweries may serve samples, with or without charge (up to 48 ounces per customer per day), for on-premises consumption between 10 a.m. and 8 p.m. in an approved sample room, including on an approved patio, deck, or lawn if:

• The outdoor area(s) are designated on the floor plan you submitted with your application.
• It is immediately accessible from the sample room.
• Building, health, and fire approval has been obtained.
• It has an approved perimeter barrier.

Customers may stay on the premises and continue to consume until 9 p.m., including collaboration beers (fill out the Brewery Collaboration Notification Form (PDF) and send to CARD before participating in a collaboration).

What counts as a perimeter barrier

A perimeter barrier is a barricade enclosing the perimeter of the patio/deck. The barrier must be constructed in a manner that impedes foot traffic and clearly defines the boundary of the exterior portion of the premises. The barrier must be a solid structure that is at least three feet high and have a single six-foot entrance permitting public access from an unlicensed area to the patio/deck. The barrier may be constructed of materials such as lattice or wrought iron that do not form a solid structure, have a portion of it be water, and/or have additional entrances permitting public access to the patio/deck. If there are questions relating to this, contact CARD.

Small brewery delivery limits

Individual deliveries, other than draught beer, are limited to the case equivalent of 8 barrels a day to each licensed retailer, and the total amount of beer sold or delivered directly to all retailers may not exceed 10,000 barrels a year.

The licensee or permit holder may pick up the product directly from the brewery by producing a copy of the license or special permit.

Deliveries may also include a retailer’s approved noncontiguous alcohol storage area located within 10 miles of the licensed premises. How do you know if they have one? A license will be issued with approved non-contiguous storage information listed on the front of it. You can also look up a license on TAP to see if a licensee has an approved noncontiguous storage area.

Collaboration beer rules

Small breweries may sell and serve beers in their approved sample room that were produced in collaboration with other brewers, subject to the following:

• No more than 6 distinct beers served per calendar year.
• A brewer who goes to another brewer’s premises to produce a collaborated beer may sell not more than 7 barrels, or an equal proportion based on the number of participating brewers, whichever is less, in its sample room.
• All brewers must be actively involved in the brewing of the beer. Actively involved means all brewers were present for the brewing process.
• You must fill out the Beer Collaboration Form (PDF) before you start the process.

Licensed large breweries may:

• Sell and deliver only to licensed beer wholesalers.
• Ship products outside of Montana but must adhere to the receiving state laws.

Licensed large breweries may not:

• Allow for on-premises consumption.
• Provide samples.
• Sell for off-premises consumption from the brewery location.

You may host a sampling event where you pour and serve beer samples to licensed on-premises retailers and their employees to promote your product, to negotiate a sale, or to determine the quality and character of a product.

You may provide samples at an industry trade show event where you pour and serve beer samples to attendees to promote your product, to negotiate a sale, or to determine the quality and character of a product.

Employees or agents who intend to provide their beer at an industry trade show may bring product using its own equipment, trucks, and employees, or using a common carrier, deliver alcoholic beverages it produces from its premises to the industry trade show.

After an industry trade show, any remaining beer may be retained by the manufacturer, its employees, or the licensee where the trade show took place, if applicable. See the Industry Trade Show page for more information.

Breweries may participate at a public tasting event (such as a brewfest) only at an on-premises licensed establishment, an event catered by an on-premises licensee, or an event held by a special permit holder. See the Public Tasting Event page for more information.