On October 14, 1978, President Jimmy Carter signed into law H.R. 1337, a bill that included a provision legalizing the home production of a certain amount of beer and wine for personal use. This was a significant moment in American brewing history, as it lifted restrictions that had been in place since the Prohibition era.
While the law itself didn’t immediately spark a homebrewing revolution, it allowed individuals to brew up to 100 gallons per person (or 200 gallons per household) of beer or wine each year without paying taxes on it. This created the legal groundwork for the homebrewing movement, which eventually contributed to the craft beer boom in the U.S.
Homebrewing had been illegal in the U.S. since Prohibition (1920–1933), and while winemaking had been re-legalized after Prohibition ended, brewing beer at home remained illegal until Carter’s law passed.
Though Carter is credited with signing the bill, the push for homebrewing legalization was largely driven by California Senator Alan Cranston, who added the homebrewing provision to H.R. 1337, which primarily dealt with taxation on transportation fuels.
This change in the law encouraged a rise in the hobby of homebrewing, and many of today’s successful craft brewers got their start in homebrewing.
In 1978, a seemingly minor legislative act signed by President Jimmy Carter set off a seismic shift in American culture, one that would transform the beer industry and give rise to the craft beer revolution. On October 14, 1978, Carter signed H.R. 1337, a bill primarily focused on excise taxes for trucks and buses, but tucked within it was an amendment that legalized homebrewing at the federal level for the first time since Prohibition. This moment, often overlooked in the broader scope of Carter’s presidency, became a catalyst for the vibrant craft beer scene we know today.
The Historical Context: Prohibition’s Long Shadow
To understand the significance of H.R. 1337, we need to step back to the era of Prohibition (1920–1933), when the 18th Amendment banned the manufacture, sale, and transportation of alcohol in the United States. While the 21st Amendment repealed Prohibition in 1933, it left a curious omission: home winemaking was legalized, but homebrewing beer remained illegal at the federal level. Federal regulators were wary of homebrewers potentially using brewing grains to produce moonshine, a dangerous and toxic homemade liquor. This fear kept homebrewing in a legal gray area, with hobbyists risking fines or even jail time for brewing small batches of beer at home.
By the 1960s and 1970s, a small but passionate homebrewing community began to emerge, driven by enthusiasts like Charlie Papazian, who learned to brew while studying at the University of Virginia. These hobbyists, often operating covertly, formed clubs and shared recipes, seeking to create beers with more flavor and character than the mass-produced light lagers dominating the American market. At the time, fewer than 100 breweries operated in the U.S., with giants like Anheuser-Busch, Miller, and Coors controlling the industry.
The Legislative Push: Unsung Heroes Behind H.R. 1337
While Jimmy Carter is often hailed as the “homebrew hero,” the real architects of the homebrewing legalization were Senator Alan Cranston (D-CA) and Representative William Steiger (R-WI). In 1976, California homebrewers, including members of the Maltose Falcons and San Andreas Malts, lobbied Cranston, a member of the Senate Ways and Means Committee, to champion their cause. Cranston, who was notably skeptical of the Bureau of Alcohol, Tobacco, and Firearms (ATF), introduced Amendment No. 5354 to H.R. 1337, a tax bill that had little to do with alcohol. Steiger co-sponsored the amendment, advocating for homebrewers’ rights.
The amendment faced resistance. The ATF proposed that homebrewers register with the agency and limit their production to just 30 gallons per household annually—a restriction that hobbyists found impractical. Cranston and Steiger pushed back, arguing that such regulations were overly burdensome and would stifle the hobby. Their advocacy led to a compromise: the amendment allowed adults to brew up to 100 gallons per person or 200 gallons per household annually for personal use, tax-free, without registration. This victory was a significant deregulation, removing barriers that had long suppressed homebrewing.
Carter signed H.R. 1337 into law on October 14, 1978, and it took effect on February 1, 1979. The signing was a quiet affair, with little fanfare, and Carter himself, a Southern Baptist who rarely drank, likely had minimal personal investment in the homebrewing provision. Yet, his signature on this bill would have a profound impact.
The Ripple Effect: From Homebrewing to Craft Brewing
The legalization of homebrewing unleashed a wave of creativity and entrepreneurship. In December 1978, just months after the bill’s passage, Charlie Papazian and Charlie Matzen founded the American Homebrewers Association (AHA) in Boulder, Colorado, and launched Zymurgy magazine to share brewing knowledge. The AHA became a hub for the growing homebrewing community, which today estimates that 500,000 to 750,000 Americans brew at least one batch of beer annually.
Homebrewing became the training ground for many of the craft beer industry’s pioneers. Approximately 90–95% of craft brewers started as homebrewers, including Ken Grossman and Paul Camusi of Sierra Nevada Brewing Company (founded in 1980) and Jim Koch of Boston Beer Company (founded in 1984). These early craft breweries challenged the dominance of macrobreweries, introducing bold flavors like hoppy IPAs and rich stouts to American palates. By 2025, the U.S. boasts nearly 10,000 breweries, a stark contrast to the 90 or so in 1979, with craft breweries driving much of this growth.
The law’s impact extended beyond federal boundaries, though state-level legalization was a slower process. While some states quickly adopted the federal standard, others crafted their own regulations, and it wasn’t until 2013 that Mississippi and Alabama became the final states to legalize homebrewing. Even today, the AHA continues to advocate for fair homebrewing laws, particularly around transporting and sharing homebrew.
Carter’s Legacy: An Unlikely Beer Icon
Jimmy Carter’s role in the homebrewing revolution is both celebrated and debated. Critics argue that his contribution was overstated, as he merely signed a bill driven by Cranston, Steiger, and passionate homebrewers. The broader craft beer boom also owed much to state-level reforms, like the legalization of brewpubs in the 1980s, and innovations such as the development of the Cascade hop. Yet, it’s undeniable that Carter’s signature removed a critical barrier, giving homebrewers the legal freedom to experiment and innovate.
For a man who avoided alcohol due to his faith, Carter’s legacy as a craft beer icon is delightfully ironic. The AHA and brewers across the country have toasted him as a hero, with many crediting H.R. 1337 for enabling the diversity of beers available today. In 2010, Georgia homebrewers even gifted Carter a bottle of honey lager, to which he responded with a handwritten note: “The honey lager has a great taste. It should be on the market.” His understated pride in the law’s impact reflects his broader commitment to small businesses and individual freedoms.
Raising a Glass to Carter
As we sip on a crisp IPA or a velvety porter, it’s worth pausing to honor Jimmy Carter’s small but pivotal role in the craft beer revolution. H.R. 1337 was more than a tax exemption; it was a spark that ignited a movement, empowering hobbyists to dream big and reshape an industry. So, the next time you enjoy a craft beer, raise a glass to Carter, Cranston, Steiger, and the countless homebrewers who turned a once-illegal pastime into a cornerstone of American culture.
Cheers to an American homebrew hero, President Jimmy Carter.