Bipartisan legislation encourages investments in draft beer
What is the CHEERS Act? It is legislation that would offer tax relief to businesses investing in draft beer systems in the form of changes to an existing code. It impacts brewery taprooms, brewpubs, bars, restaurants, entertainment venues, and other similar establishments. Trade organizations across the hospitality and beer industries support the Creating Hospitality Economic Enhancement for Restaurants and Servers (CHEERS) Act.
Bipartisan support
The legislation was first introduced over a year ago but stalled in last year’s session. It was introduced again in both houses of Congress last week. Sponsors of the CHEERS Act include four Representatives and two Senators, three of whom are Republicans and three of whom are Democrats.
One of the bill’s sponsors, Suzan DelBene (D), represents Washington’s 1st congressional district. “The CHEERS Act offers a bipartisan solution to help small brewers in Washington and across the country invest in energy-efficient draft systems, reduce waste and create more jobs,” said DelBene. “By expanding these tax incentives, this legislation supports both economic recovery and environmental responsibility. This will deliver real benefits to small businesses in Washington.”
Senator Tim Sheehy (R-MT) adds, “Reducing the tax burden on small businesses is a commonsense policy that helps deliver on the promise to put Main Street businesses and workers first. I’m proud to lead the CHEERS Act to support small businesses nationwide as they invest in growing their operations, creating jobs, boosting local economies and strengthening communities.”
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How it Works
The CHEERS Act expands the longstanding Section 179D tax deduction for energy-efficient investments. That section would now include deductions for investments in keg and tap systems, draft equipment upgrades, and lost or stolen kegs. Kegged beer, compared to beer packaged in bottles and cans, is a more sustainable option at bars, restaurants, and entertainment venues for several reasons. Modern, efficient draft systems offer even greater advantages than outdated draft systems.
By reducing upfront costs, this bill makes it easier for bars, restaurants, and brewery taprooms to modernize their draft beer infrastructure and continue serving draft beer to consumers. Supporters believe that helping hospitality venues improve their draft systems is beneficial for the beer industry as a whole and is particularly helpful for the craft beer industry.
Industry Support
“With craft brewers producing 30% of all draft beer sold, restaurants, bars and retail partners play a vital role in the brewing ecosystem,” said Bart Watson, president and CEO of the Brewers Association. “A strong on-premise market and quality draught service are essential to the success of small and independent craft brewers. We wholeheartedly support the introduction of the CHEERS Act and thank Congressmen LaHood and Horsford for championing legislation and the new sponsors for supporting this bill that fosters economic growth and strengthens these key industry partners.”
“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 of public affairs at the National Restaurant Association. “The result would be more consumer choice, strengthened sustainability options and needed support for restaurant owners in every neighborhood.”
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Here is the complete list of CHEERS Act sponsors.
- Rep. Darin LaHood (R-IL)
- Rep. Steven Horsford (D-NV)
- Rep. Suzan DelBene (D-WA)
- Rep. Claudia Tenney (R-NY)
- Senator Tim Sheehy (R-MT)
- Senator Maggie Hassan (D-NH)
You can learn how to contact ANY of your congressional representatives here. It is very easy to send a quick message. They all need to hear from you and know that you support the CHEERS Act. Below, you will see the message I’ve sent to my Senators and my Representative:
I encourage you to support the CHEERS Act, which Representative DelBene and others recently reintroduced. This is a win-win proposal, helping businesses invest in the more sustainable option while also benefiting Washington’s small, independent breweries. Nationwide, 30 percent of draft beer is supplied by independent craft breweries. In Washington, where craft beer numbers outpace the nation, that percentage is even higher. “On-premise” beer (kegged beer) has been particularly slow to recover from the pandemic shutdowns. The CHEERS Act would help stimulate that recovery. AND it promotes the more sustainable option: kegged beer is widely considered the more sustainable option compared to bottled and canned beer. This legislation enjoys support from many organizations across the hospitality industry. I sincerely hope the CHEERS Act will also enjoy your support.
