…but there are permits, taxes, and regulations, oh my!
In an opinion on Friday, April 10th, 2026, the United States Court of Appeals for the Fifth Circuit upheld a lower court decision declaring the location restrictions for a distilled spirits plant (26 U.S.C. § 5178(a)(1)(B)) unconstitutional. If the ruling is not appealed by the Government, then home-distilling will be federally legal in Louisiana, Mississippi, and Texas. The ruling would not directly apply to states outside of the Fifth Circuit, so we will have to wait and see if the Alcohol and Tobacco Tax and Trade Bureau (TTB) decides to apply the ruling narrowly or apply it evenly across all of the states. Regardless, there are some notable caveats that any would-be home-distillers need to be aware of, lest they raise the ire of the revenuers.
First, home-distilling still requires a Distilled Spirits Plant (DSP) permit from TTB! The ruling does not absolve home-distillers from getting a permit; it only removes the restriction on locating a DSP in a dwelling or connected enclosure.
Second, records, reports, and tax returns! Unlike homebrewing and winemaking, there are no personal use exemptions from paying Federal Excise Tax (FET) for spirits. No amount of spirits can be produced for beverage use without owing FET. Likewise, a home-distiller will need to prepare, file, and maintain proper records and reports for spirits they produce, process, and warehouse.
Third, labeling and formulation! Home-distillers will still be required to obtain formula approval for certain distilled spirits products and Certificates of Label Approval (COLAs) for all spirits labels. They’ll also have to ensure such products are properly produced, labeled, and advertised in accordance with their approvals and applicable rules. TTB may allow COLA exemptions, but a home-distiller would still need to apply for those exemptions.
Finally, state (and sometimes local) law! Most states have laws against home-distillation, so be sure to check state and local laws and comply with any state and local licensing and permitting schemes.
In its narrowest construction, this ruling allows people residing in the Fifth Circuit to apply for and be granted a DSP in their home so long as they comply with other applicable laws and regulations. It does not mean that your neighbor can build a still in his garage and start making his moonshine with no oversight. For people who want to home-distill in other places, we will need to wait to see how TTB reacts to the ruling.
In addition to striking down the restrictions on locating a DSP in a home, the ban on locating a DSP “on board any vessel or boat” was also declared unconstitutional. If your state allows it and you are in the Fifth Circuit, now is the time to live out your riverboat captain moonshiner fantasy. I hope that someone with the time and money decides to dress up as Mark Twain, buy a boat, and put a permitted distillery on it.
If you are a home-distiller looking to take advantage of this ruling, we recommend reaching out to a qualified attorney to help you navigate the regulatory landscape, obtain requisite permits, licenses, authorizations, and otherwise maintain compliance with federal, state, and local laws. The upfront costs to start home-distilling may end up being higher than some would like, but they are surely better than the civil fines and criminal charges that could result from non-compliance.
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