# The CHEERS Act: What It Actually Does

The CHEERS Act is a tax break for restaurants, bars, and entertainment venues that invest in energy-efficient equipment for serving beer and other draft beverages. Specifically, it allows businesses to deduct the cost of energy-efficient kegs, tap systems, and related draft equipment from their taxes, treating these items the same way the tax code already treats other energy-efficient commercial building improvements.

Here's what this means in practical terms: If a restaurant owner buys new stainless steel or aluminum kegs and modern tap equipment that uses less energy than older systems, they can now claim a tax deduction for that investment. Previously, these items didn't qualify for the energy efficiency tax break that other commercial building upgrades could claim. Now they do. The deduction applies to equipment placed in service after the bill becomes law, so any bar or restaurant making this upgrade going forward could potentially reduce their tax bill.

The impact is fairly narrow and specific. This mainly benefits businesses in the hospitality industry—restaurants, bars, breweries, and similar venues—that are willing to invest in newer, more efficient draft systems. The tax savings could help offset the upfront cost of upgrading to energy-efficient equipment, which might encourage more businesses to make the switch. For consumers, this could indirectly support the hospitality industry by making it slightly easier for these businesses to invest in upgrades, though the direct impact on everyday people is minimal. The bill essentially says the government will help shoulder some of the cost of these efficiency improvements through tax deductions.

CHEERS Act

LaHood, Darin

Creating Hospitality Economic Enhancement for Restaurants and Servers Act or the CHEERS Act This bill treats qualified energy-efficient draft property (energy efficient kegs) as energy efficient commercial building property for purposes of the tax deduction for energy efficient commercial buildings. It defines qualified energy-efficient draft property as property that is principally used in the trade or business of operating a restaurant, bar, or entertainment venue, and that is a stainless steel or aluminum container or related commercial tap equipment used to distribute or sell alcohol.