H.R. 10157

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10157 Introduced in House (IH)]
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119th CONGRESS
  2d Session
                               H. R. 10157
 To amend the Internal Revenue Code of 1986 to exempt home distillery
  establishments from taxation and other requirements, and for other
                               purposes.
_______________________________________________________________________
                    IN THE HOUSE OF REPRESENTATIVES
                            August 27, 2026
  Mrs. Harshbarger (for herself, Mr. Moore of West Virginia, and Mr.
  Burchett) introduced the following bill; which was referred to the
                      Committee on Ways and Means
_______________________________________________________________________
                                 A BILL
 To amend the Internal Revenue Code of 1986 to exempt home distillery
  establishments from taxation and other requirements, and for other
                               purposes.
    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
    This Act may be cited as the ``Freedom to Home Distill Act''.
SEC. 2. EXEMPTION OF HOME DISTILLERY ESTABLISHMENTS FROM TAXATION AND
              OTHER REQUIREMENTS.
    (a) Exemption From Tax.--Section 5001 of the Internal Revenue Code
of 1986 is amended--
            (1) by redesignating subsection (d) as subsection (e), and
            (2) by inserting after subsection (c) the following new
        subsection:
    ``(d) Exemption for Distilled Spirits Produced at Home Distillery
Establishments.--Subject to regulations prescribed by the Secretary,
the tax imposed by subsection (a) shall not apply to distilled spirits
produced at a home distillery establishment.''.
    (b) Definition of Home Distillery Establishment; Clarification of
Related Definitions.--
            (1) Definition of home distillery establishment.--Section
        5002(a) of such Code is amended by adding at the end the
        following new paragraph:
            ``(16) Home distillery establishment.--
                    ``(A) In general.--The term `home distillery
                establishment' means an establishment that--
                            ``(i) is located in the dwelling house of
                        the owner of such establishment, or in any
                        shed, yard, or inclosure connected with such
                        dwelling house, and
                            ``(ii) produces distilled spirits solely
                        for personal or family use by the owner of such
                        establishment.
                    ``(B) Personal or family use.--
                            ``(i) In general.--A home distillery
                        establishment shall be treated as producing
                        distilled spirits solely for personal or family
                        use if--
                                    ``(I) such establishment produces
                                no more than--
                                            ``(aa) in the case of a
                                        household with only 1 adult, 10
                                        proof gallons of distilled
                                        spirits per calendar year, or
                                            ``(bb) in the case of a
                                        household with 2 or more
                                        adults, 20 proof gallons of
                                        distilled spirits per calendar
                                        year, and
                                    ``(II) no distilled spirits
                                produced by such establishment are sold
                                to any person, or transferred to any
                                person for sale by such person.
                            ``(ii) Adult.--For purposes of this
                        paragraph, the term `adult' means an individual
                        who has attained 21 years of age, or the
                        minimum age (if any) established by law
                        applicable in the locality in which the
                        household is situated at which distilled
                        spirits may be sold to individuals, whichever
                        is greater.''.
            (2) Clarification of related definitions.--
                    (A) Definition of distilled spirits plant.--Section
                5002(a)(1) of such Code is amended by adding at the end
                the following new sentence: ``Such term shall not
                include any home distillery establishment.''.
                    (B) Definition of distiller.--Section 5002(a)(4) of
                such Code is amended by adding at the end the following
                new flush sentence:
        ``Such term shall not include any person who produces only
        distilled spirits exempt from tax under section 5001(d).''.
    (c) Exemption From Notice Requirements Related to Stills.--Section
5101(a) of such Code is amended by adding at the end the following new
paragraph:
            ``(3) Exemption for stills used to produce distilled
        spirits at home distillery establishments.--Any requirements
        prescribed by the Secretary under paragraph (1) or (2) shall
        not apply with respect to any still, boiler, or other vessel
        manufactured or set up exclusively for the purpose of
        distilling at a home distillery establishment.''.
    (d) Limitation on Sales of Stills for Home Distillery
Establishments.--
            (1) In general.--Section 5101 of such Code, as amended by
        subsection (c), is amended--
                    (A) by redesignating subsection (b) as subsection
                (c), and
                    (B) by inserting after subsection (a) the following
                new subsection:
    ``(b) Limitation on Sales of Stills for Home Distillery
Establishments.--The Secretary shall, pursuant to regulations, require
that no still, boiler, or other vessel may be sold or transferred to
any person who intends to use such still, boiler, or vessel solely as
part of a home distillery establishment, unless such still, boiler, or
vessel has--
            ``(1) a pressure release valve,
            ``(2) a vacuum relief valve, and
            ``(3) a capacity of not greater than 50 gallons.''.
            (2) Conforming amendment.--The heading of section 5101 of
        such Code is amended by striking ``set up of still'' and
        inserting ``set up of still; limitation on certain sales of
        stills''.
    (e) Exemption From Stills Registration Requirement.--Section
5179(a) of such Code is amended by inserting ``stills or distilling
apparatus set up in a home distillery establishment and'' after
``except that''.
    (f) Nonapplication of Prohibition on Production or Use of
Distilling Materials in Certain Locations.--Section 5222(a)(2)(C) of
such Code is amended by striking ``section 5042 or 5053(e)'' and
inserting ``section 5001(d), 5042, or 5053(e)''.
    (g) No Criminal Penalty for Distilling in Home Distillery
Establishment.--Section 5601(a)(6) of such Code is amended by inserting
``or in the case of a home distillery establishment'' after ``section
5178(a)(1)(C)''.
    (h) Effective Date.--The amendments made by this section shall
apply to distilled spirits produced, and stills, boilers, and other
vessels sold, after December 31, 2026.
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