The Tennessee House voted 57-31 on Monday night to approve allowing whiskey distilleries to operate in Hamilton County.
The bill is set to pave the way for the local Chattanooga Whiskey Company to open a distillery on the Southside.
Rep. Richard Floyd fought the bill during a lengthy debate, but delegation chairman Vince Dean said other members supported it.
He said, "I generally oppose liquor bills, but I considered this a jobs bill. I can't see it resulting in more whiskey in Chattanooga. Whiskey is already sold here, and now it can be made here."
Rep. Dean said he did not receive any emails in opposition and got some in favor.
The bill must go back to the state Senate because of an amendment barring distilleries from being within 2,000 feet of a house of worship, daycare center or school. Rep. Dean said the City Council could lessen that requirement.
He said the bill means that "we can have jobs here rather than Indiana having them." Chattanooga Whiskey is now made in Indiana.