Butterfly Fund

Sunday, January 26, 2014

Making your own alcohol for personal use and Federal Government Statements

So, you want to make Beer, Wine, Spirits?
These are the Federal Statutes concerning that.
(Your state laws may vary)

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Beer:

Sec. 25.205
Production


(a) Any adult may produce beer, without payment of tax, for personal or family use and not for sale. An adult is any individual who is 18 years of age or older. If the locality in which the household is located requires a greater minimum age for the sale of beer to individuals, the adult shall be that age before commencing the production of beer. This exemption does not authorize the production of beer for use contrary to state or local law.
(b) The production of beer per household, without payment of tax, for personal or family use may not exceed:
    (1) 200 gallons per calendar year if there are two or more adults residing in the household, or (2) 100 gallons per calendar year if there is only one adult residing in the household.
(c) Partnerships except as provided in Sec. 25.207, corporations or associations may not produce beer, without payment of tax, for personal or family use.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053))

This was last updated on September 17, 1999

Sec. 25.206
Removal of beer

Beer made under Sec. 25.205 may be removed from the premises where made for personal or family use including use at organized affairs, exhibitions or competitions such as homemaker's contests, tastings or judging. Beer removed under this section may not be sold or offered for sale.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053))
Sec. 25.207 Removal from brewery for personal or family use.
Any adult, as defined in Sec. 25.205, who operates a brewery under this part as an individual owner or in partnership with others, may remove beer from the brewery without payment of tax for personal or family use. The amount of beer removed for each household, without payment of tax, per calendar year may not exceed 100 gallons if there is one adult residing in the household or 200 gallons if there are two or more adults residing in the household. Beer removed in excess of the above limitations will be reported as a taxable removal.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053))

This was last updated on September 17, 1999



Wine:

Code of Federal Regulations
  Title 27 - Alcohol, Tobacco Products and FirearmsVolume: 1Date: 2006-04-01Original Date: 2006-04-01Title: Section 24.75 - Wine for personal or family use.Context:
     Title 27 - Alcohol, Tobacco Products and Firearms. CHAPTER I - ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE TREASURY. SUBCHAPTER A - LIQUORS. PART 24 - WINE. Subpart C - Administrative and Miscellaneous Provisions.  - Tax Exempt Wine.
 
    § 24.75
    Wine for personal or family use.
    (a) General. Any adult may, without payment of tax, produce wine for personal or family use and not for sale.
    (b) Quantity. The aggregate amount of wine that may be produced exempt from tax with respect to any household may not exceed:
    (1) 200 gallons per calendar year for a household in which two or more adults reside, or
    (2) 100 gallons per calendar year if there is only one adult residing in the household.
    (c) Definition of an adult. For the purposes of this section, an adult is any individual who is 18 years of age or older. However, if the locality in which the household is located has established by law a greater minimum age at which wine may be sold to individuals, the term “adult” will mean an individual who has attained that age.
    (d) Proprietors of bonded wine premises. Any adult, defined in § 24.75(c), who operates a bonded wine premises as an individual owner or in partnership with others, may produce wine and remove it from the bonded wine premises free of tax for personal or family use, subject to the limitations in § 24.75(b).
    (e) Limitation. This exemption should not in any manner be construed as authorizing the production of wine in violation of applicable State or local law. Except as provided in § 24.75(d), this exemption does not otherwise apply to partnerships, corporations, or associations.
    (f) Removal. Wine produced under this section may be removed from the premises where made for personal or family use including use at organized affairs, exhibitions or competitions, such as home winemaker's contests, tastings or judgings, but may not under any circumstances be sold or offered for sale. The proprietor of a bonded wine premises shall pay the tax on any wine removed for personal or family use in excess of the limitations provided in this section and shall also enter all quantities removed for personal or family use on TTB F 5120.17, Report of Bonded Wine Premises Operations. (Sec. 201, Pub. L. 85-859, 72 Stat. 1331, as amended (26 U.S.C. 5042))
    (Approved by the Office of Management and Budget under control number 1512-0216)
    [T.D. ATF-299, 55 FR 24989, June 19, 1991, as amended by T.D. ATF-338, 58 FR 19064, Apr. 12, 1993; T.D. ATF-344, 58 FR 40354, July 28, 1993]


Spirits:

You cannot produce spirits for beverage purposes without paying taxes and without prior approval of paperwork to operate a distilled spirits plant. [See 26 U.S.C. 5601 & 5602 for some of the criminal penalties.] There are numerous requirements that must be met that make it impractical to produce spirits for personal or beverage use. Some of these requirements are paying excise tax, filing an extensive application, filing a bond, providing adequate equipment to measure spirits, providing suitable tanks and pipelines, providing a separate building (other than a dwelling) and maintaining detailed records, and filing reports. All of these requirements are listed in 27 CFR Part 19.

Spirits may be produced for non-beverage purposes for fuel use only without payment of tax, but you also must file an application, receive TTB's approval, and follow requirements, such as construction, use, records and reports.

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What all this basically comes down to is ...
1. Americans can own a still, but it must be no larger than 1 gallon, and may only be used for water purification or the extraction of essential oils from plants.

2.Dealers/manufacturers of stills in the United States must surrender any address or other info on any customer who buys a still to the BATF, when they request it.(no warrant is required.)

What this means is that anyone who buys a still in America can at any time expect a knock at the door and a man with a badge demanding to see what is being done with the still they bought. How this effects the companies seen advertising 5 gallon stills for use as a water purifier, was not listed, nor is there any info on solar stills. It is probably VERY illegal to import a still too.
 
Whats the cost of doing it right ?
    State (varies from $75-$3,150 per year) & a Federal license ($500 per year) plus State & Fed. production taxes. Registration of all supplies, suppliers, formulas (Subject to classification and approval) and label reg. (Subject to classification and approval). More paperwork than money. If you already have a brewery or winery (bonded premisis) an "alternation of premisis" may be obtained to operate a distillery (with the additional license) on site. Well worth the trouble, because there is still room at the top.