PRIA Logo™
AlabamaHB5932026 Regular SessionHouse

Small Craft Alcoholic Beverage Producers; licensing of small craft distilleries, small craft wineries, and small craft alcoholic beverage producers authorized

Sponsored By: Andy Whitt (Republican)

Enacted

Alcoholic Beverages & Tobacco

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

12 provisions identified: 0 benefits, 3 costs, 9 mixed.

Craft businesses lose licenses for violations

Beginning October 1, 2026, the state alcohol board must revoke covered craft licenses after finding a Chapter 4A violation. This applies to brewpub, small distillery, small winery, and combined craft complex licenses. The business loses its authority to operate under that license.

Small distilleries face monthly tax deadlines

Beginning October 1, 2026, small distilleries must pay the state alcohol board applicable markup and taxes on their own retail liquor sales. Monthly returns and payment are due by the last day of the following month, unless an advance written extension is granted. Returns use board-prescribed consolidated reporting, and distilleries must keep required records. Late filing brings a penalty equal to the greater of 10% of additional tax due or $50. Late payment brings a 10% penalty on unpaid tax, plus interest at the federal underpayment rate.

Brewpubs gain sales options with limits

Beginning October 1, 2026, qualified brewpubs can make up to 10,000 barrels of beer yearly for a $1,000 annual license fee. They can sell their beer on site, sell through a designated wholesaler, and sell wholesaler-purchased beer for on-site drinking. Packaged take-home sales are capped at 864 ounces per customer per day. Brewpubs must provide food, keep brewing at the licensed site, and follow local zoning and packaging rules. Charity donations are capped at 31 gallons per qualifying event, remain taxable, and leftovers must return to the brewpub for disposal.

Craft businesses can combine licensed operations

Beginning October 1, 2026, qualified businesses can combine brewpub, winery, and distillery operations under one license. Each operation must meet its own license standards, with separate production premises on adjoining, walkable properties. The annual fee is $2,000; converting an existing license costs $1,000 initially, followed by $2,000 annual renewals. Eligible sites include designated historic buildings, registered historic districts, and locally designated redevelopment or economically distressed areas. Local zoning and police-power restrictions still apply when a business first applies.

Small distilleries gain sales with limits

Beginning October 1, 2026, qualified small distilleries can make up to 50,000 gallons yearly for a $1,000 annual license fee. They can sell their liquor on site, sell to the state alcohol board or as it authorizes, and sell board-purchased liquor on site to adults 21 or older. Take-home sales must use original unopened containers and cannot exceed 4.5 liters per customer per day. Distilleries must keep making liquor at the licensed site and follow local zoning and approved packaging rules. Charity donations are capped at 4.5 liters per qualifying event, remain taxable, and leftovers must return for disposal.

Small wineries gain sales with limits

Beginning October 1, 2026, qualified small wineries can make up to 50,000 gallons of table wine yearly. The annual license costs $1,000; wineries must keep producing at their licensed site and follow local zoning and packaging rules. They can sell their wine on site or through a designated wholesaler, and sell wholesaler-purchased wine for on-site drinking. Take-home sales in original unopened containers are capped at twelve 750-milliliter bottles per customer per day. Charity donations are capped at two cases per qualifying event, remain taxable, and leftovers must return for disposal.

Brewpubs and wineries must collect taxes

Beginning October 1, 2026, brewpubs must add and collect applicable beer taxes on their own beer sold for on-site drinking. Beer tax applies when beer is set aside for retail sale, not when poured. Small wineries must add and collect applicable wine taxes on their own table wine sold to consumers, on or off site. Both must file returns, pay taxes, and keep required records under the specified wholesaler tax duties. Brewpubs must name a licensed wholesaler designee; wineries must name one for wine intended for resale to retailers.

Alcohol delivery orders face location safeguards

Beginning October 1, 2026, licensed alcohol delivery services can take orders by phone, online, or other electronic means. Customers must confirm they are at least 21, and payment must clear before alcohol leaves the licensed premises. Orders count as sales at the retailer's primary business location, including orders through third-party services. Drivers can pass through dry counties or towns, but cannot deliver to people who live there. Drivers must carry electronic or other proof that the intended recipient is outside a dry area.

Alcohol makers can offer limited tastings

Beginning October 1, 2026, covered manufacturers can offer guided tours with in-person lessons about their drink's history and science. Tastings follow the tour in a designated enclosed area separate from other designated areas. Each visitor gets at most one tasting session daily, with no more than two samples. Each sample is capped at 0.5 ounce of liquor, 4 ounces of beer, or 1.5 ounces of table wine. For patrons over 21, tasting charges must be included in the tour price; tour authority does not permit retail sales.

Alcohol makers gain restricted off-site storage

Beginning October 1, 2026, licensed manufacturers can use one board-approved storage site in Alabama, within 10 miles of their premises. Approval requires federal alcohol agency approval, proof of property control, and a current state license. The secured site can hold finished and unfinished goods, but cannot offer sales, tastings, sampling, export, or in-state distribution. Manufacturers must keep goods records; authorized inspectors can enter without a warrant. Transport requires board approval, a licensee or employee driver, a vehicle displaying the licensee's signage, and product ownership papers.

Craft makers gain limited event sales

Beginning October 1, 2026, covered licensees can sample and sell their own packaged drinks at qualifying public events. Events must have a private or nonprofit sponsor and last no more than three consecutive days. Applications are due at least 20 days ahead; the nonrefundable fee is up to $150, with 12 licenses yearly per licensee. Daily take-home limits per customer are 4.5 liters of liquor, 864 ounces of beer, or twelve 750-milliliter wine bottles. Local permits, event registration, booth fees and control, insurance coverage, taxes, and tasting limits apply; Article 1 licensees can offer only one beverage type they make, and sales to retailers are barred.

Smaller beer makers can invest in brewpubs

Beginning October 1, 2026, beer makers selling no more than 60,000 barrels yearly can hold a financial interest in brewpubs. This includes brewpubs with restaurant retail licenses. These manufacturers cannot transfer alcohol directly to the brewpub; supplies must come through authorized wholesalers or another lawful route. They cannot hold a financial interest in other retailers.

Sponsors & Cosponsors

Sponsor

  • Andy Whitt

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 415 • No: 56

Senate vote • 4/7/2026

Third Reading in Second House

Yes: 33 • No: 0

House vote • 4/7/2026

Whitt Motion to Concur In and Adopt Senate Amendment - Adopted Roll Call 1259

Yes: 80 • No: 9 • Other: 14

Senate vote • 4/7/2026

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1202

Yes: 34 • No: 0

Senate vote • 4/7/2026

Chesteen motion to Adopt - Adopted Roll Call 1201

Yes: 34 • No: 0

House vote • 3/31/2026

Third Reading in House of Origin

Yes: 73 • No: 11 • Other: 14

House vote • 3/31/2026

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1073

Yes: 61 • No: 35 • Other: 6

House vote • 3/31/2026

Motion to Adopt - Adopted Roll Call 1072

Yes: 100 • No: 1 • Other: 1

Actions Timeline

  1. Enacted

    4/16/2026House

  2. Enrolled

    4/8/2026House

  3. Delivered to Governor

    4/8/2026House

  4. Signature Requested

    4/8/2026Senate

  5. Third Reading in Second House

    4/7/2026Senate

  6. Carried Over to the Call of the Chair

    4/7/2026Senate

  7. Chesteen 1st Amendment Offered

    4/7/2026Senate

  8. Chesteen motion to Adopt - Adopted Roll Call 1201

    4/7/2026Senate

  9. Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1202

    4/7/2026Senate

  10. Whitt Motion to Concur In and Adopt Senate Amendment - Adopted Roll Call 1259

    4/7/2026House

  11. Ready to Enroll

    4/7/2026House

  12. Ready to Enroll

    4/7/2026House

  13. Reported Out of Committee Second House

    4/2/2026Senate

  14. Read for the Second Time and placed on the Calendar

    4/2/2026Senate

  15. Read for the first time and referred to the Senate Committee on Tourism

    4/1/2026Senate

  16. Pending Committee Action in Second House

    4/1/2026Senate

  17. Third Reading in House of Origin

    3/31/2026House

  18. Economic Development and Tourism Engrossed Substitute Offered

    3/31/2026House

  19. Motion to Adopt - Adopted Roll Call 1072

    3/31/2026House

  20. Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1073

    3/31/2026House

  21. Engrossed

    3/31/2026House

  22. Reported Out of Committee House of Origin

    3/17/2026House

  23. Read for the Second Time and placed on the Calendar

    3/17/2026House

  24. Read for the first time and referred to the House Committee on Economic Development and Tourism

    3/10/2026House

  25. Pending Committee Action in House of Origin

    3/10/2026House

Bill Text

Related Bills

Back to State Legislation