H.R. 10157: Freedom to Home Distill Act

This bill would create a new category called a home distillery establishment and generally allow certain people to make distilled spirits at home for personal or family use without paying the federal excise tax that normally applies to distilled spirits.

What counts as a home distillery establishment

A home distillery establishment would have to be located in the owner’s home, or in a connected shed, yard, or enclosed area. It would also have to produce distilled spirits only for the owner’s personal or family use.

The bill sets production limits for this exemption:

• Households with one adult: up to 10 proof gallons per year.
• Households with two or more adults: up to 20 proof gallons per year.

It also says the spirits cannot be sold to anyone, or transferred to anyone for sale.

Tax and regulatory changes

The bill would exempt spirits made at a home distillery establishment from the federal tax on distilled spirits. It would also say that a home distillery establishment is not treated the same as a regular distilled spirits plant, and that a person who only makes tax-exempt spirits under this new rule would not count as a “distiller” for certain federal tax purposes.

In addition, the bill would remove or reduce several federal requirements that normally apply to distilling equipment used at home distillery establishments, including:

• Notice requirements related to stills, boilers, or other vessels used for distilling.
• Registration requirements for stills or distilling apparatus set up in a home distillery establishment.
• Certain restrictions related to the production or use of distilling materials in specified locations.
• Criminal penalties that would otherwise apply in some cases involving distilling.

Rules for buying distilling equipment

The bill would require the Secretary of the Treasury to issue regulations limiting sales of stills, boilers, or other vessels intended solely for use in a home distillery establishment. Under those rules, such equipment could not be sold or transferred unless it has:

• a pressure release valve,
• a vacuum relief valve, and
• a capacity of no more than 50 gallons.

When it would take effect

The changes would apply to distilled spirits produced, and to stills, boilers, and other vessels sold, after December 31, 2026.

Relevant Companies

None found