The CHEERS Act Incentivizes Bars to Turn the Taps Back On

A person hooking up draft beer lines to kegs of beer.

Recently introduced legislation would offer tax incentives for bars and restaurants that serve draft beer. The CHEERS Act has attracted widespread support from organizations across the beer industry, including the Brewers Association, the trade association representing the interests of the nation’s craft brewers.

The Cheers Act is bipartisan legislation to help restaurants, bars, and other hospitality businesses that operate draught beer systems. Representatives Darrin LaHood (R-Illinois) and Steve Horsford (D-Nevada) introduced the legislation and touted its potential impact on the hospitality industry, which is still recovering from the COVID-19 pandemic. The CHEERS Act would extend accelerated tax benefits for qualifying investments into energy-efficient systems and equipment used to serve draft beer at restaurants and bars.

“Small and independent craft brewers know all too well the impacts of the pandemic on the hospitality industry,” said Bob Pease, the president and CEO of the Brewers Association. “With 30 percent of all draught 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.”


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In addition to the Brewers Association, the legislation is widely supported across the beer and hospitality industries. For instance, the Steel Keg Association, National Restaurant Association, Beer Institute, Independent Restaurant Coalition, National Beer Wholesalers Association, and others expressed their support for the legislation.

“America’s restaurants and bars are important to their local communities and play a critical role in a vibrant, safe and competitive U.S. alcohol marketplace,” said Craig Purser, president and CEO of the National Beer Wholesalers Association. “Unfortunately, challenges from COVID, labor shortages and inflation have hit them especially hard. Beer distributors understand the challenges these businesses face as they seek to build back. The CHEERS Act will allow beer retailers to make important investments in draught beer to help revitalize these important community businesses. On behalf of America’s beer and beverage distributors, we thank Representatives Darin LaHood and Steven Horsford for their support of the hospitality industry.”


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The Washington Beer Blog intends to track the progress of this legislation as it moves forward and we will offer guidance for anyone looking to pledge their support. For now, know that it’s out there and, if you are so inclined, drop your congressperson a line and ask them to sign on as sponsors of the CHEERS Act.

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