IllinoisSB0618104th General Assembly (2025–2026)SenateWALLET

LIQUOR-TECH

Sponsored By: Cristina Castro (Democratic)

Became Law

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Bill Overview

Analyzed Economic Effects

30 provisions identified: 15 benefits, 6 costs, 9 mixed.

New high-cap license for brewers

Beginning July 1, 2026, a new class 2 brewer license is available. You can make up to 3,720,000 gallons of beer a year. Only a licensed brewer or licensed non‑resident dealer can hold it, and you cannot be tied to a maker over that cap. With Commission approval, you can move up to 3,720,000 gallons a year to another class 2 site you wholly own.

Set state fees for alcohol licenses

The law sets fixed State fees for many alcohol licenses and permits. Examples: Class 1 Distiller $4,000–$5,000; Class 3 Brewer $1,200–$1,500; showcase permits $100–$250. Fees go to the Dram Shop Fund; for retailer licenses, half goes to the Dram Shop Fund and half to General Revenue. The Commission may waive some “1A” retailer renewals that expired July 1, 2022 to June 30, 2023.

Monthly liquor taxes and bonds

Manufacturers and importing distributors must pay the State liquor tax by the 15th of the month after the sale or use month and file monthly reports. On‑time electronic filers who pay electronically may receive a statutory discount. Most must post a bond between $1,000 and $100,000; first‑time applicants and those with under $50,000 of prior‑year tax are exempt. After two straight years of compliance, you are exempt from the bond until delinquent.

New Class 1 brewer rules and self-distribution

Beginning July 1, 2026, Illinois creates a Class 1 brewer license that allows up to 930,000 gallons a year. Class 1 brewers may sell and deliver to importing distributors, distributors, and retailers, and with approval may transfer up to 930,000 gallons to a wholly owned Class 1 site. Eligible Class 1 brewers can apply to self-distribute up to 232,500 gallons a year to retailers, with public posting and annual certification. A Class 1 brewer that makes spirits must also hold a Class 1 craft distiller license and is capped at 50,000 gallons of spirits a year; if it makes wine, it must hold a first‑class wine license and is capped at 50,000 gallons of wine a year. Affiliation with larger producers is restricted.

Bigger warehouse options for makers

Brewers can get warehouse permits to store large volumes off‑site: up to 930,000 gallons for Class 1 and up to 3,720,000 gallons for Class 2. Craft distillers (Class 1 or 2) can get a warehouse permit to store up to 500,000 gallons of spirits they make. No retail sales are allowed at these warehouse sites.

New Class 3 brewer path and limits

Beginning July 1, 2026, a Class 3 brewer may make up to 465,000 gallons a year, with no more than 155,000 at one site. With an approved exemption, it may self‑distribute up to 6,200 gallons from each site, not over 18,600 gallons total per year, with annual certifications. A Class 3 brewer may, with prior Commission approval, transfer up to 155,000 gallons a year to another wholly owned Class 3 site. Applications for self‑distribution are posted 45 days before action and must show compliance and ownership limits.

New craft distiller option

A Class 3 craft distiller license is available if you make no more than 100,000 gallons of spirits a year. With this license, you may sell to importing distributors, distributors, and retail licensees under the law.

Small distillers may self-distribute

Eligible small distillers may self‑distribute up to 5,000 gallons a year to retailers and certain licensees. Class 1 craft distillers qualify if they make under 50,000 gallons a year; Class 3 craft distillers qualify if they make under 100,000 gallons a year and meet affiliation limits. Applications are posted 45 days before action, and holders must certify production each year and follow tax and liquor laws. If they later assign a territory to a distributor, self‑distribution in that area ends within 60 days.

Small wineries can self-distribute

Eligible wineries that make 25,000 gallons or less per year can apply to self‑distribute up to 5,000 gallons a year to retail licensees. You must be in compliance with State revenue and liquor laws and file a sworn application and yearly certification. You cannot be in an affiliated group over 25,000 gallons of wine, 930,000 gallons of beer, or 50,000 gallons of spirits.

Wineries can ship to Illinois homes

Licensed wineries can get a winery shipper license to send wine they make directly to Illinois adults for personal use. They must pay Illinois liquor gallonage tax, follow sales or use tax rules, file shipment reports twice a year, and keep records for three years. The law allows out‑of‑state manufacturers to participate if they consent to Illinois jurisdiction and audits. Violations can lead to license loss and criminal penalties.

Caps on Class 1 distillers

A Class 1 craft distiller may hold more than one license, but total production across all Class 1 sites is capped at 50,000 gallons per year. Total sales to non‑licensees across all licenses are capped at 5,000 gallons per year.

Limits on owning across alcohol tiers

Distillers and wine makers, and people owning more than 5% of them or their affiliates, cannot hold distributor or importing distributor licenses. Distributors, importing distributors, and retailers, and their owners over 5%, subsidiaries, or affiliates, cannot hold distiller, craft distiller, or wine maker licenses. If you commonly own multiple breweries, wineries, or distilleries, you get retail privileges from only one of them, and the Commission may limit locations, adjacent premises, or self‑distribution to stop workarounds.

Brew pub and taproom sales rules

Beginning July 1, 2026, a brew pub may make up to 155,000 gallons a year on site and sell up to 155,000 gallons a year for off‑premises use if sold in person. With approval, a brew pub may transfer up to 155,000 gallons a year to another wholly owned brew pub, and commonly owned pubs may combine and allocate production limits. A brew pub may not sell its beer to retail licensees. Brewers (Class 1, 2, and 3) may sell certain products on their premises for on‑ or off‑premises use, but in‑person only, and Class 2 brewers are limited to selling from no more than three named locations. Some long‑standing operators are grandfathered or may convert a brew pub to a Class 3 brewer under set conditions.

Class 2 brewer limits and transfers

Beginning July 1, 2026, Class 2 brewers may sell and deliver only to importing distributors and distributors. If they make spirits, they must also hold a Class 2 craft distiller license and are capped at 100,000 gallons of spirits a year; if they make wine, they must hold a second‑class wine‑maker license and are capped at 150,000 gallons of wine a year. A Class 2 brewer may transfer up to 31,000 gallons a year to a wholly owned brew pub within 80 miles, with records, prior notice, and an annual verified report. The transfer lowers the brew pub’s own production limit.

Class 3 craft distiller limits and sales

A Class 3 craft distiller is capped at 100,000 gallons of spirits a year and cannot be affiliated with larger producers. It may sell spirits it makes to a defined list of buyers, including retail licensees, Class 3 brewers, other craft distillers, importing distributors, and distributors, under the law’s conditions. With prior approval, it may transfer up to 2,500 gallons a year to another wholly owned Class 3 distillery site.

Craft distiller tasting-room retail rules

Class 1 and Class 2 craft distillers may sell up to 5,000 gallons a year of their spirits to non‑licensees, in person and on premises only. They may sell vermouth for on‑premises use if purchased from a licensed distributor. They must carry liquor liability insurance to the maximum dram shop limits, cannot deliver alcohol off premises, must affirm production and sales caps each year, and may sell to non‑licensees from no more than three named locations.

Distributor privileges clarified and limits set

Distributors may buy, store, and sell alcohol wholesale to Illinois licensees and, where allowed, to buyers outside Illinois. They may sell certain beer products to brewers for brewery sales and vermouth to craft distillers under the law’s conditions. A distributor cannot also hold a non‑resident dealer license. These clarifications apply beginning July 1, 2026.

New distilling pub license and transfers

A distilling pub may make up to 5,000 gallons of spirits a year on site, serve on premises, and sell up to 5,000 gallons a year for off‑premises use in person. Distilling pubs cannot sell their made spirits to retail licensees. A Class 2 craft distiller may hold up to three distilling pub licenses under combined 100,000‑gallon caps and no retail sales of its spirits. A Class 2 craft distiller may also transfer up to 5,000 gallons a year to a wholly owned distilling pub within 80 miles, with records, notice, an annual verified report, and taxes applying to transferred spirits.

Licensing for alcohol server trainers

The Commission licenses people who teach Beverage Alcohol Sellers and Servers Education and Training. It also runs a statewide awareness program to cut under‑21 drinking. Trainers apply on Commission forms.

Caps on fines and bottle penalties

Administrative fines are capped at up to $500 per day, with a $20,000 maximum per license period. For bottles with foreign objects, the first 10 bottles may be destroyed only. The 11th bottle and every third after may be destroyed and fined up to $50 per bottle.

Cocktail pickup and delivery allowed

From July 1, 2026 through August 1, 2028, retailers without manufacturing privileges may sell sealed mixed drinks or single‑serve wine for pickup or delivery. A trained employee aged 21+ must deliver, check ID, get a signature, and place drinks in the trunk or rear area. Third‑party couriers cannot deliver these drinks. Labels and tamper‑evident seals are required.

Craft distiller tasting permits

Class 1 and Class 2 craft distillers can get a tasting permit to move product to a named site and offer samples there. No sales or resale of that inventory are allowed. The permit requires local approval and dram shop insurance at the statutory maximum limits.

Loyalty and mug clubs allowed

Brew pubs, Class 1/2/3 brewers, and manufacturers with retail rights may run loyalty, rewards, and mug club programs. They can charge membership fees and offer discounts or specialty glassware. Mug club members must apply in writing, and the licensee must keep a list of active members. These permissions do not extend to general retail licensees.

New license classes and permits listed

Illinois updates its official license list to include new categories, such as Class 3 Craft Distiller (Class 15) and the spirits showcase permit. Cross‑references in the law now point to these new classes so businesses can apply under the correct category.

New rules for retail and catering

Beginning July 1, 2026, a retailer license lets you sell alcohol at or from your licensed location for use or consumption, and you may transfer or ship to buyers if local law allows. A new caterer retailer license lets you serve alcohol with prepared meals at events, move inventory to and from your store, and buy for direct delivery to event sites. Distributors may refund unused, salable beer when an event is canceled by an act of God if strict conditions are met. Returning inventory from an off‑site event requires bona fide fuel, labor, and delivery charges, collected before transfer.

Short-term beer and spirits showcases

Beer and spirits showcase permits let licensees sell at short events. Distributors and Class 3 brewers (for beer they make) may sell up to 96 fluid ounces per person at a beer showcase. Class 3 craft distillers may sell up to 156 fluid ounces per person at a spirits showcase. Each permit can run for one day or for 2 to 15 days per location in a 12‑month period. Dram shop insurance and local approval are required, and resale is not allowed.

Brokers must be licensed to solicit

Beginning July 1, 2026, anyone who, for a fee or commission, solicits orders to Illinois retailers or promotes orders shipped out of Illinois must hold a broker license. Retailers cannot buy from unlicensed brokers. Brokers must quickly report accepted transactions to the Commission. Certain distributor and manufacturer employees are excluded, and some registered agents cannot get a broker license.

Register brand reps who visit retailers

Beginning July 1, 2026, manufacturers that use agents who regularly contact Illinois retailers must register those agents with the State Commission. The filing lists names, addresses, the manufacturer, and assigned territory. The Commission posts registered agents online. Knowingly false statements are a Class B misdemeanor, and fraud or misrepresentation can lead to suspension or revocation.

Clear rules for importers and dealers

Beginning July 1, 2026, a duly licensed distributor can get an importing distributor license right away with no fee. That license allows importing from anywhere in the U.S. outside Illinois, but you cannot also hold a non‑resident dealer license. Foreign importers may bring alcohol from outside the U.S. (not in bulk) and sell only to Illinois importing distributors, and must register each brand. Non‑resident dealers may ship and warehouse liquor in Illinois and sell only to foreign importers and importing distributors, and must register brands; they cannot hold distributor or importing distributor licenses.

Stronger but fairer liquor enforcement

The Commission must start cases within two years after it learns of a violation. For under‑21 sales, a repeat counts only if within five years. Any notice must include the field report, photos, and other evidence, or the case is dismissed. The Commission can fine unlicensed actors up to $20,000 per offense after a hearing. Agents cannot search private areas like safes or closed desks without reasonable suspicion or a warrant.

Sponsors & Cosponsors

Sponsor

Cristina Castro
Democratic • Senate

Cosponsors

Jeff Keicher
Republican • House
Martha Deuter
Democratic • House
Matt Hanson
Democratic • House
Robert "Bob" Rita
Democratic • House
Robyn Gabel
Democratic • House
Sally J. Turner
Republican • Senate
Sara Feigenholtz
Democratic • Senate
Suzy Glowiak Hilton
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 265 • No: 44

House vote • 10/29/2025

Third Reading - Short Debate - Passed

Yes: 104 • No: 6

House vote • 10/28/2025

Do Pass / Short Debate Executive Committee;

Yes: 10 • No: 0