Your support is crucial for advancing the CHEERS Act and helping the hospitality industry; click below to take action:
THE CHEERS ACT
As restaurants bars and venues continue to face high inflation, supply chain issues, and other logistical challenges, a large coalition of related industries is advocating for federal economic recovery through H.R. 7577, the CHEERS Act: Creating Hospitality Economic Enhancement for Restaurants and Servers, introduced by U.S. Representatives Darin LaHood (R-IL-16) and Steven Horsford (D-NV-04).
This bipartisan legislation proposes a straightforward tax incentive to promote the use of kegs – encouraging consumers to enjoy a beer in the freshest, most energy-efficient manner possible while supporting bars and restaurants.
Since 2005, the tax code has provided a deduction for qualifying investments in energy-efficient systems on commercial premises. Under the CHEERS Act, this provision would be expanded to apply to all new keg and tap properties, incentivizing the use of draft lines and keg equipment in taprooms, restaurants, and bars.
The CHEERS Act not only encourages hospitality establishments to serve draft beverages in a sustainable, reusable way but also allows bars, restaurants and venues to invest more resources into their employees and hire more servers. This crucial legislation will provide your favorite local businesses with the capital and workforce to stay afloat amid an uncertain economic climate.
The CHEERS Act
ENJOYS BIPARTISAN SUPPORT
SUPPORTS SUSTAINABILITY
PROVIDES RELIEF TO RETAILERS
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The CHEERS Act is a bipartisan initiative to alleviate some of the financial strain on our hospitality sector, including taprooms, restaurants, bars and venues by encouraging the adoption of energy-efficient draft beer systems and ultimately supports these businesses and their employees.
The bill empowers retailers by expanding existing sustainability tax credits to cover the installation of new keg and tap systems, the most environmentally friendly way to distribute and sell beer.
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The COVID-19 pandemic forced bars, restaurants and venues nationwide to shutter their doors, triggering a shift towards consumers purchasing beverage alcohol in single-use containers like cans and bottles. This caused a significant decline in the utilization of kegs! Even today, draft beer volume share remains notably diminished – down 26% since 2019.
Restaurants, bars and venues continue to face high inflation, supply chain issues, and other logistical challenges. The CHEERS Act would offer beer retailers much-needed tax relief while incentivizing more environmentally conscious consumption.
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Unlike single-use products like aluminum cans and glass bottles, kegs and tap lines can be reused over an extended period of time. This allows beer retailers like bars, restaurants, and entertainment venues to cut down on waste.
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Kegs have a 30+ year lifespan and allow establishments to serve fresh pints while producing minimal waste. Steel kegs save more than 400,000 metric tons of greenhouse gas emissions each year and keep roughly 500,000 tons of packaging out of landfills each year.
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There are more than 300,000 draft locations in the United States. These include your favorite bars, restaurants, stadiums, music venues and more!
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There are more than 16 million Americans working by thousands of hospitality businesses of all sizes.
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The Creating Hospitality Economic Enhancement for Restaurants and Servers (CHEERS) Act would give tax breaks to businesses that use energy efficient draft lines and keg equipment.