CHEERS Act would serve tax breaks to beer venues

Taxpayers can raise a mug to one proposed tax bill: A pair of lawmakers introduced the Creating Hospitality Economic Enhancement for Restaurants and Servers (CHEERS) Act on Monday to provide a tax deduction for bars, restaurants and entertainment venues with draft beer systems.

The bipartisan bill, introduced by Rep. Darin LaHood, R-Illinois, and Steven Horsford, D-Nevada, aims to help revitalize hospitality establishments still struggling years into the pandemic.

The CHEERS Act would expand tax incentives for qualifying investments into energy-efficient systems to include keg and tap property to support the use of draft lines and keg equipment at restaurants and bars. 

“Illinois has a rich history of craft brewers and local bars from Chicago to Peoria and beyond,” LaHood said in a statement. “Many of our local businesses and the hospitality sector at large are still facing economic challenges. This bipartisan bill will support these local establishments by incentivizing the expansion of tap lines and keg equipment on commercial premises.”

The Tax Code already allows for the deduction for qualifying investments in energy-efficient systems on commercial property under Section 179D since 2005. The CHEERS Act would expand that section of the code to apply to new keg, tap and draft line property on commercial property in bars, restaurants and entertainment venues. The legislation would also incentivize the use of sustainable draft containers and installation property.

“Las Vegas is our nation’s hospitality and entertainment capital, if not the world,” said Horsford in a statement. “The CHEERS Act would boost not only our smaller bars, clubs and entertainment venues but also many of our casinos, hotels and arenas. This will allow many small-business owners in my district to grow their business and invest more in their employees. And we will reduce waste created by using smaller, disposable containers at many restaurants, bars and other venues.”

Not surprisingly, a number of hospitality industry trade groups are backing the legislation.

“Beer is America’s favorite alcohol beverage, and with draft systems in tens of thousands of establishments across the country, this bill will allow businesses to create more jobs and stimulate local economies from coast to coast,” said Brian Crawford, president and CEO of the Beer Institute, in a statement.

“The CHEERS Act would give restaurant and bar owners new tools to innovate how they serve beer to customers,” said Sean Kennedy, executive vice president for public affairs of the National Restaurant Association, in a statement. “The result would be more consumer choice, strengthened sustainability options, and needed support for restaurant owners in every neighborhood.”