CHEERS Act Reintroduced in Senate and House

Bipartisan legislation aimed at helping bars, restaurants, and taprooms invest in draft beer equipment was reintroduced in the Senate on June 4, building on companion legislation already introduced in the House earlier this year.

On June 4, Senators Tim Sheehy (R-MT) and Maggie Hassan (D-NH) reintroduced the Creating Hospitality Economic Enhancement for Restaurants and Servers (CHEERS) Act (S. 4688). Companion legislation (H.R. 7620) was introduced in the House by Representatives Darin LaHood (R-IL), Steven Horsford (D-NV), Claudia Tenney (R-NY), and Suzan DelBene (D-WA) in February.

The legislation would make it easier for bars, restaurants, and entertainment venues to invest in draft beer equipment by allowing them to recover those costs more quickly through the tax code. Eligible equipment includes kegs, draft containers, tap systems, and related equipment made from stainless steel or aluminum. The changes would apply to qualifying equipment installed after December 31, 2025.

The legislation recognizes the importance of the on-premise marketplace and the role draft systems play in delivering high-quality beer to consumers. Providing more favorable tax treatment for draft infrastructure can encourage investment in keg and draft systems, strengthen on-premise beer sales, and support the use of reusable packaging. Craft beer over-indexes in the on-premise draft market, so strengthening draft infrastructure would particularly benefit small and independent brewers.

The bill defines qualified energy-efficient draft alcohol property as stainless steel or aluminum containers and related commercial draft equipment installed in U.S. buildings and principally used by restaurants, bars, or entertainment venues. Guidance from the Treasury Department on implementation, including rules governing leased or rented equipment, will come after passage.

The CHEERS Act was first introduced in the 118th Congress as bipartisan, bicameral legislation designed to encourage investment in draft beer infrastructure through modifications to Section 179D of the Internal Revenue Code. It was reintroduced earlier in the 119th Congress; however, following passage of the One Big Beautiful Bill Act, which substantially revised and limited the scope of Section 179D, it was revised to use an accelerated depreciation treatment for qualified draft alcohol property.

The Brewers Association will continue working with our partners at the Beer Institute and the National Beer Wholesalers Association to secure passage of the CHEERS Act as a way to create more infrastructure for draft beer and defend beer's place in the market.