ATF Response to questions about home winemaking

§ 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]

§ 24.76 Tax exempt cider.

Cider, when produced solely from the noneffervescent fermentation of apple juice without the use of any preservative method or material, and when produced at a place other than a bonded wine premises and sold or offered for sale as cider, and not as wine or as a substitute for wine, is not subject to the tax on wine, or to the provisions of this part.

(Sec. 201, Pub. L. 85–859, 72 Stat. 1331, as amended (26 U.S.C. 5042))

W12: May I sell home-produced wine?

Proprietors of many new wine premises have extensive experience as home winemakers before deciding to make application to become a bonded winery. TTB has been asked if wine produced by a home winemaker, prior to the issuance of a federal permit and approval of an application and bond, may be brought to a bonded wine premises and offered for sale.

As given in the law at 26 U.S.C. 5042 and in the Federal wine regulations at 27 CFR 24.75 (a) and (f), wine produced for personal or family use may not be sold or offered for sale:
27 CFR 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.
…

(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.

We suggest that a home winemaker that is planning to become the proprietor of a newly established bonded winery (“a”) should consider having wine produced by an existing, fully qualified bonded winery (“b”) under a custom crush arrangement. At such time that the applications and bond for the new winery (“a”) are approved, the wine produced by the bonded winery (“b”) for the new company can be transferred in bond to the newly established premises. That wine may be sold or offered for sale.

In summary, only wine produced at a fully qualified bonded wine premises may be sold or offered for sale. Wine produced off the bonded premises by amateur winemakers under home-winemaker conditions should be stored away from bonded wine premises.