US Court Abolishes 158 Year Home Distilling Ban

The US Court of Appeals for the Fifth Circuit has overturned a federal ban on home distilling, putting an end to a 158-year statute.

The court ruled in favour of the Hobby Distillers Association (HDA) and its three plaintiffs, ruling that the government’s ban on distilling at home or near a residence violates the Constitution’s Taxation Clause and Necessary and Proper Clause. 

The ruling concluded that the US Department of Justice (DOJ) and the Alcohol and Tobacco Tax and Trade Bureau (TTB) can not place a ban on home distilling under the guise of tax administration.

The law has roots way back in 1868, when Congress created strict rules around where spirits could be produced over concerns about tax evasion.

Under 26 U.S.C. § 5178(a)(1)(B), spirits production is banned at “any dwelling house” or “any shed, yard, or enclosure” that is connected to a private home. Violations can trigger up to US$10,000 in fines and five years in prison.

The Plaintiffs

In this case, all four plaintiffs are hobby distillers who experiment with making spirits at home for personal use, rather than commercial use. Some of them already made beer, wine and cider at home (which is permitted under US law) and wanted to expand into spirits.

The legal battle began after plaintiff Scott McNutt received a 2014 TTB warning stating that federal law offered no exemptions for personal spirits production, threatening criminal prosecution.

By November 2023, the agency reaffirmed this hardline stance, informing the plaintiffs' attorney that home distilling permits were impossible as the practice was strictly "against the law."

In response, the Hobby Distillers Association (HDA) and the plaintiffs sued the TTB and DOJ for injunctive relief. While a district court initially dismissed several plaintiffs for a lack of standing, the Fifth Circuit reversed the decision, acknowledging the group's genuine intent to distill and the very real threat of federal prosecution.

The government's intial argument was that home distilling was banned in the first place to prevent tax evasion (because hidden stills could conceal proof gallons or avoid tax liability entirely).

The Fifth Circuit rejected this reasoning, calling the statute “anti-revenue” because it eliminated the possibility of production entirely, warning that if Congress could ban activity simply because it might lead to tax avoidance, there would be no limiting principle.

In essence, this logic would mean that home-based businesses or remote work could face criminal charges.

The ruling also mentions that the government has not challenged the court’s analysis during the appeal process. As such, it will not be addressed further and has been forfeited on appeal.

Despite the win, the HDA clarified that while a federal TTB permit is still required to legally produce spirits, the government can no longer blanket-ban distillation based on location. Hobbyists are now cleared to operate in residential spaces, including homes, garages, or gardens, provided they navigate the existing permitting process.

Kanpai!

88 Bamboo Editorial Team