No, its still illegal, weather you sell it or not. You can make beer, you can make wine but you cant distill spirits. You CAN get a permit to make fuel and you CAN get permits for distilling commercially but we are not talking about that now (and good luck getting a permit to drink it, its a huge, long drawn out process. Oh, and dont forget money, its expensive as hell).
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Again, NO, you cant make it for home use. As stated above, you can get a permit if you intend to make fuel but thats not what we are talking about here. Moonshine is for drinking, ethanol is for your car.
IMHO, its not a big deal to bend the laws a little bit (did you speed comming home from work tonight?) but with distilling its a good idea to know if you are breaking the law or not (you will be). That just keeps you from saying stupid things to people that just shouldnt be hearing about what you are doing. Use your head, keep your mouth shut and you will be fine. Hang out at homedistiller and you might meet people local to you. Homebrew clubs usually have some distillers and you can meet people there.
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