News CHEERS Act Would Give Tax Break to Bars and Restaurants That Serve Draft Beer

The CHEERS Act, a congressional bill that would provide a tax break to restaurants and bars that utilize draft beer systems and help revitalize the hospitality industry has been introduced in Washington, DC.

H.R. 7577, the Creating Hospitality Economic Enhancement for Restaurants and Servers (CHEERS) Act, would expand tax incentives for qualifying investments into energy-efficient systems to include keg and tap property, supporting the use of draft lines and keg equipment at restaurants and bars.

The bill was in traduced by U.S. Representatives Darin LaHood (R-IL-16), a member of the House Ways and Means Committee, and Steven Horsford (D-NV-04).

“Small and independent craft brewers know all too well the impacts of the pandemic on the hospitality industry,” said Bob Pease, President and CEO of the Brewers Association. “With 30% of all draft beer sold produced by craft brewers, restaurants, bars, and retail partners are integral parts of the brewing community, and healthy on-premise business and draught service are crucial to the overall health of small and independent craft brewers. We enthusiastically support the introduction of the CHEERS Act and thank Congressmen LaHood and Horsford for supporting legislation that will encourage economic growth and help these important partners.”

Since 2005, the tax code has allowed for the deduction for qualifying investments in energy-efficient systems on commercial property under Section 179D. The Cheers Act would expand the code section to apply to new keg, tap, and draft line property on commercial property in bars, restaurants, and entertainment venues.

As many local and small businesses continue to recover from the effects of the pandemic, the CHEERS Act incentivizes the use of sustainable draft containers and installation property, providing relief to small businesses who need it most, according to a press release from the office of Representatives Darin LaHood.

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