It is illegal to own or operate an alembic for any reason or use. To make ethanol fuel, you will need to submit a federal license application TTB 5110.74. It's legal to own and sell through distribution if you have a federal distillation permit in Indiana, but you're not allowed to sell directly to consumers. However, it's not as simple as that. According to Wuslich, the Indiana State Legislature continues to impose strict restrictions on distillation.
Distilling your own alcohol at home is still illegal in the United States at the federal level, so no matter what state law says, you can't make your own alcohol. Federal law allows private citizens to have a still to make alcohol-free products, such as perfume and fuel, as long as they have the correct license. Many states have their own laws regarding distillation, and these laws can replace federal laws. It is illegal to be in possession of illegal alcohol or to transport it.
IC 7,1-5-4-1 Possession of Untaxed Beverages Prohibited Sec. It is a Class C misdemeanor for a person to sell, exchange, give away, or possess an alcoholic beverage, knowing that all taxes owed to the state are not paid.
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