Malt beverages that contain less than 0.5% ABV are considered non-alcoholic. These are also known as cereal beverages. The Alcohol and Tobacco Tax and Trade Bureau (TTB) does not treat these beverages as beer in regards to the Internal Revenue Code (IRC), so they're not taxed like other alcoholic beverages. Even alcohol-free malt beverages are regulated by the Federal Alcohol Administration Act (FAA Act). Any beverage that contains some malted barley or hops that's subject to fermentation falls subject to these regulations.