Is It Legal to Distill Alcohol in the United States?

Yes, but not at home for drinking: distilling beverage alcohol in the U.S. without a federal permit is illegal, even if it’s for personal use and not sold. You can legally distill spirits only with the proper federal and state licenses (for a commercial distillery) or distill ethanol for fuel with a specific federal fuel alcohol permit; some non-alcohol uses of a still (like distilling water or essential oils) are lawful. Federal law preempts state law, and violations can bring felony charges, fines, and equipment forfeiture.

What Federal Law Says

Distilled spirits are tightly regulated at the federal level. Unlike wine and beer, there is no “home-use” exemption for spirits. The Alcohol and Tobacco Tax and Trade Bureau (TTB), under the Internal Revenue Code, requires permits, tax compliance, and approved premises for any beverage distilling.

The following points summarize the core federal rules that govern distilling in the U.S. and the agencies and statutes that apply.

• Permits: Operating a Distilled Spirits Plant (DSP) requires a federal permit (26 U.S.C. § 5171; 27 CFR Part 19). DSPs cannot be located in a residence (27 CFR § 19.52).
• No home exemption: Home production exemptions exist for beer and wine (26 U.S.C. §§ 5042, 5053), but not for spirits.
• Excise tax: Distilled spirits are taxed under 26 U.S.C. § 5001. Reduced Craft Beverage Modernization Act rates apply to eligible quantities but only to permitted operations.
• Fuel alcohol: Ethanol can be distilled legally for fuel with an Alcohol Fuel Plant (AFP) permit (26 U.S.C. § 5181; 27 CFR Part 19 Subpart X), and the product must be denatured (27 CFR Part 21).
• Still ownership: Owning a still is not, by itself, a federal crime; but using or intending to use it to distill alcohol without the proper permit is illegal. Federal still registration applies if it is used or intended for spirits (27 CFR Part 29).
• Industrial/research uses: Tax-free or specially denatured alcohol for scientific, educational, or governmental uses requires appropriate TTB permissions (e.g., 26 U.S.C. § 5214; 27 CFR Parts 20–22).

The upshot: without a DSP or AFP permit (or other specific authorization), distilling ethanol—especially for beverage use—is illegal under federal law, regardless of state rules.

What You Can Do Legally

There are legitimate paths to distill alcohol, but they all require formal authorization and compliance. Here are the primary legal routes and what they entail.

• Open a commercial distillery (DSP): Apply to TTB for a DSP permit, obtain state and local licenses, secure a non-residential, compliant facility, file bond if required, and pay excise tax. Label approvals (COLAs) and recordkeeping apply.
• Make fuel ethanol (AFP): Apply for an Alcohol Fuel Plant permit. Produce only for fuel, denature output per TTB formulas, keep records, and meet quantity/category limits (small, medium, large AFPs).
• Distill non-alcohol products: Using a still for water, essential oils, or other non-ethanol purposes is generally lawful under federal law without a distilling permit. State rules may still require registration of the apparatus.
• Use tax-free or denatured alcohol: For labs, education, or government use, organizations can qualify for tax-free or denatured alcohol under specific permits, rather than distilling it themselves.

These options require planning, documentation, and often inspections. The key distinction is intent and use: beverage ethanol triggers the most stringent requirements.

What You Cannot Do

Federal prohibitions are clear and do not include a personal-use or “not for sale” exception. Actions that many people assume are allowed are, in fact, unlawful.

• Home distill beverage alcohol for personal use, even if you don’t sell it.
• Gift or barter home-distilled spirits.
• Label a home still as “for fuel” but produce drinkable ethanol without an AFP permit and proper denaturing.
• Operate any distilling equipment for spirits in a residence or mixed-use dwelling.
• Possess untaxed, illicitly produced spirits or transport them across state lines.

Violations can lead to criminal charges and forfeiture of spirits, stills, and vehicles used to transport illicit product.

Penalties and Enforcement

Illicit distilling can draw federal felony charges and financial penalties, separate from any state sanctions. Enforcement focuses on tax evasion, public safety, and product diversion.

The following list outlines the consequences most commonly associated with unlicensed distilling under federal law.

• Criminal penalties: Up to 5 years in prison and fines under 26 U.S.C. §§ 5601–5602; federal fine amounts may be imposed under 18 U.S.C. § 3571.
• Forfeiture: Seizure of spirits, equipment, and conveyances used in violations (26 U.S.C. § 5615).
• Tax liabilities: Assessment of unpaid excise taxes, interest, and potential civil penalties (26 U.S.C. § 5001 et seq.).
• Business consequences: Denial or revocation of permits, and ineligibility for future licensing.

Beyond penalties, TTB and partner agencies can pursue investigations tied to public safety hazards and cross-border distribution of illicit alcohol.

State Laws and Still Ownership

States layer their own requirements on top of federal law. Many prohibit unlicensed distilling outright and may criminalize mere possession of a still intended for alcohol. Some require registering a still with state authorities even if used for non-alcohol purposes. Crucially, even if a state appears to allow home distilling, federal law still forbids it.

Here’s how to think about your state’s role and where to look for authoritative guidance.

• Check your state’s Alcoholic Beverage Control (ABC) or revenue agency for licensing, still registration, and enforcement rules.
• Local ordinances (zoning, fire code, environmental discharge) often govern where a legal distillery can operate.
• State penalties can apply independently of federal law for unlicensed production, possession, or sale.

Because requirements vary widely, verify both state and local rules before acquiring or operating any still, even for non-alcohol uses.

How to Become Legal: Permits at a Glance

For those seeking to distill lawfully, the process is structured but achievable with preparation. Expect substantial documentation, site readiness, and ongoing compliance.

The steps below outline the typical path for a commercial DSP and for an Alcohol Fuel Plant.

1. Secure a suitable premises: Non-residential, with adequate security, segregation, and compliance with local zoning and fire code.
2. Apply via TTB Permits Online: Submit diagrams, equipment lists, control group disclosures, source of funds, and background checks.
3. Meet financial and tax obligations: Determine if a bond is required; register for federal excise tax; set up recordkeeping systems.
4. Obtain state and local approvals: State distillery license, sales permits, business registration, occupancy permits.
5. For beverage spirits: Obtain label approvals (COLAs) and comply with formula approvals where required.
6. For fuel alcohol (AFP): Choose your AFP size category; follow denaturing standards and maintain required logs and reports.

Timelines vary by jurisdiction and completeness of the application. Many start with a detailed compliance plan and consult professionals experienced in TTB and state ABC processes.

Common Myths vs. Facts

Misinformation is rampant around “moonshine” and home distilling. Here are the most persistent myths, matched with the legal reality.

• Myth: “It’s legal if I don’t sell it.” Fact: No. There is no federal personal-use exemption for spirits.
• Myth: “I can make a small amount, like 1 gallon.” Fact: Quantity doesn’t matter—any unpermitted beverage distilling is illegal.
• Myth: “State law says it’s okay.” Fact: Federal law controls; even permissive-sounding state statutes don’t override federal prohibitions.
• Myth: “I’ll call it essential oils.” Fact: Intent and outcome matter. Producing drinkable ethanol without a permit is illegal regardless of labels.

If you want to produce spirits or fuel legally, the safe path is to obtain the appropriate federal and state approvals first.

Bottom Line

You cannot legally distill beverage alcohol at home anywhere in the United States. Legal distilling requires a federal DSP permit (and state/local licenses) for beverage alcohol or an AFP permit for fuel ethanol, with strict compliance and no residential operations. Owning a still for non-alcohol uses can be lawful, but state rules may require registration. When in doubt, consult TTB guidance and your state’s ABC agency before you begin.