Bipartisan, Bicameral CHEERS Act Aims to Revitalize Bars, Restaurants and Entertainment Venues Nationwide
Legislation would provide targeted tax relief to help hospitality and entertainment sectors recover, grow and reinvest in local communities.
Washington, D.C. – With bipartisan and bicameral support, Representatives Darin LaHood (R-IL-16), Steven Horsford (D-NV-04), Suzan DelBene (D-WA-01) and Claudia Tenney (R-NY-24) alongside Senators Tim Sheehy (R-MT) and Maggie Hassan (D-NH), today introduced H.R.3325/S.1732, the Creating Hospitality Economic Enhancement for Restaurants and Servers (CHEERS) Act. This critical legislation provides targeted tax relief to bars, restaurants, taprooms and entertainment venues with draft beer systems, helping the hospitality sector reinvest in local businesses and their employees.
These investments would enhance service, drive job creation and stimulate local economies, all while promoting sustainability through reduced packaging waste in every congressional district. The CHEERS Act was first introduced last Congress and received strong bipartisan support. This bill incentivizes investments in draft beer systems and offers an economic boost to the hospitality industry.
“Local restaurants, taprooms and bars are an essential part of our economy across Illinois’ 16th Congressional District,” said Rep. LaHood. “I am proud to reintroduce the bipartisan, bicameral CHEERS Act to provide much-needed relief to our local businesses and encourage continued investment in our communities. This bill will revitalize the hospitality industry, support local jobs, generate economic growth, and promote the use of sustainable tap equipment in bars and restaurants.”
“In Las Vegas, hospitality means more than good times – it means good jobs,” Rep. Horsford said. “The CHEERS Act would boost job opportunities at all levels, from small bars and clubs to major casinos, hotels and arenas. The tax incentives in it would help employers invest in their most important asset – their people. I’m proud to introduce this bipartisan proposal with Rep. LaHood again in the 119th Congress, and will continue to partner with him to boost jobs in Nevada and across the United States.”
“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 Rep. 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.”
“Local bars and restaurants are the heart of our Main Street economy. The Creating Hospitality Economic Enhancement for Restaurants and Servers Act will strengthen these businesses by providing incentives to expand tap lines and keg equipment on commercial properties, supporting growth in our local hospitality and brewing industries,” said Congresswoman Tenney.
“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,” said Senator Tim Sheehy.
“Too many local bars and restaurants are facing rising costs,” said Senator Hassan. “This bipartisan legislation gives small businesses in the hospitality industry a tax cut to install energy-efficient draft beer systems, which not only helps customers enjoy a drink but also helps reduce costs for restaurants and bars.”
“The beer industry is committed to supporting its retail partners, who are local businesses from coast to coast, and to furthering access for all legal drinking age Americans to fresh, ice-cold beer on draft,” said Brian Crawford, president and CEO of the Beer Institute. “We applaud Reps. LaHood, Horsford, Tenney and DelBene and our Senate champions, Sens. Sheehy and Hassan for introducing the CHEERS Act, which will provide relief to your favorite local pubs, bars, taprooms, restaurants and entertainment venues nationwide that serve beer, America’s favorite alcohol beverage. We look forward to seeing this bill stimulate reinvestment in businesses to create more jobs and stimulate local economies nationwide.”
Associations and businesses nationwide shared their support and excitement for the reintroduction of the CHEERS Act:
“As local bar and tavern owners continue to steer their businesses through the ups and downs of the economy and current beverage alcohol marketplace, the CHEERS Act would add some tax certainty for Main Street beverage businesses looking to improve their draft beer programs,” said American Beverage Licensees Executive Director, John Bodnovich. “We’re grateful for the leadership of Senators Sheehy and Hassan, and Representatives LaHood, Horsford, Tenney and DelBene in introducing this important legislation, and note that with the celebration of National Tavern Month this May, there is no better time to show support for America’s bars and taverns.”
“The American Cider Association is proud to back the reintroduction of the CHEERS Act—a timely and impactful piece of legislation for the hospitality industry, which remains essential to the growth and visibility of cider,” said Monica Cohen, CEO of the American Cider Association. “With more than 60% of all cider consumed in on-premise settings, venues like taprooms, bars and restaurants are where many consumers first experience and fall in love with cider. By promoting the adoption of modern, energy-efficient draft equipment, the CHEERS Act supports environmental responsibility, economic recovery and improved customer experience. We commend lawmakers for advancing this effort and encourage swift passage to bring much-needed support to the industry.”
Rosanna Maietta, president & CEO of the American Hotel & Lodging Association said, “The CHEERS Act is the kind of smart, bipartisan legislation our industry needs. By extending critical tax incentives to keg and tap systems, this bill provides meaningful relief for hotel restaurants and bars facing rising operating costs today. It’s good policy, and a refreshing way to support hospitality.”
“BeerBoard proudly endorses the proposed CHEERS Act,” said Mark Young, founder and CEO of BeerBoard. “It is exciting to see this bill incentivize and support the adoption of technology and advanced equipment systems by on-premise retailers and beer suppliers. As the leader in technology for alcohol management and the hospitality industry, BeerBoard continues to work to unite retailers and suppliers, enhance efficiency and drive improved revenues for all. The CHEERS Act will play a major role in that effort.”
“With craft brewers producing 30% of all draft beer sold, restaurants, bars and retail partners play a vital role in the brewing ecosystem. A strong on-premise market and quality draught service are essential to the success of small and independent craft brewers,” said Bart Watson, president and CEO of the Brewers Association. “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.”
“As the largest pourer of draft beer in the U.S., we expect the ability to deduct more sustainable keg equipment could go a long way,” said Buffalo Wild Wings. “Buffalo Wild Wings franchises across the country, as well as the environment we and our guests live in, could benefit from the leadership from the Senators and Representatives on this issue.”
“Crowler Nation is proud to support the CHEERS Act,” said Tim Klein, director of Crowler Nation. “Crowlers combine the best of both worlds—cans and growlers—and are specifically designed for storing draft alcohol beverages. Our team applauds the representatives and senators who recognize the importance of supporting sustainable practices in on-premise establishments that serve draft. This legislation helps these businesses reinvest in their people and products, which helps our small business continue to grow.”
“Draft beer delivers big for both the environment and the bottom line,” said Jennifer Hauke, founder and principal of Draftline Technologies. “It drives the highest dollar velocity for bars and restaurants and offers the fresh-from-the-tap experience people crave. Supporting the bipartisan CHEERS Act is common sense for Draftline Technologies and for anyone with draft at their location— it helps on-premise retailers stay competitive and keeps this beloved tradition thriving.”
“Independent restaurants and bars are still working to recover from years of economic disruption, and rising costs continue to strain businesses already operating on tight margins,” said Erika Polmar, executive director of the Independent Restaurant Coalition. “The CHEERS Act is a smart, targeted solution that helps local businesses upgrade equipment, reduce waste, and serve their communities more efficiently. We’re grateful to Reps. LaHood, Horsford, DelBene and Tenney and Senators Hassan and Sheehy for championing legislation that supports small businesses and strengthens the economic fabric of neighborhoods across the country.”
“The CHEERS Act is a bipartisan and common-sense piece of legislation that provides essential tax savings for franchise bars and restaurants,” said Mike Layman, chief advocacy officer of the International Franchise Association. “During this period of economic uncertainty, small business entrepreneurs on Main Street are looking for tax relief they can count on, and the CHEERS Act also promotes innovation within the industry. We applaud the bicameral coalition for reintroducing this initiative, which will offer a significant boost to the franchise community everywhere.”
“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 inflation, labor shortages and COVID 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 energy-efficient draft beer systems to help revitalize these important community businesses. On behalf of America’s beer and beverage distributors, we thank Senators Sheehy and Hassan, as well as Representatives LaHood, DelBene, Horsford and Tenney for their support of the hospitality industry.”
“Independent stages continue to face steep financial challenges, and the CHEERS Act offers a practical way to ease some of the burden by making it more affordable to install or maintain energy-efficient draft systems,” said Stephen Parker, executive director of the National Independent Venue Association. “At a time when every dollar counts, this bipartisan bill is a smart way to support economic recovery and sustainability in hospitality and live entertainment spaces alike, and we urge Congress to prioritize its passage.”
“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.”
“The hospitality industry is in many ways at the center of our communities and our economy,” said Dan Vorlage, executive director of the Steel Keg Association. “Because these local businesses operate with tight margins and other pressures, it is a challenge to make up-front investments in equipment that lower costs and reduce emissions. The CHEERS Act will make draft beverage systems more affordable, encouraging the use of efficient and sustainable, reusable steel kegs. We raise a glass to the Beer Institute, Reps. LaHood, Horsford, Tenney and DelBene as well as Sens. Sheehy and Hassan for rallying support for local bars and restaurants.”
“As a draft beer-centric operator, Tully’s Good Times supports this legislation,” said Daniel Giamartino, owner of Tully’s Good Times. “We look forward to continuing efforts from our leaders to provide pathways that enhance our industry.”
“Not only is draft beer the freshest and the way the brewer intends us to drink their beer, but it is also the most green and sustainable packaging as there is no waste,” said John Lane, co-owner of the Winking Lizard Tavern. “Unlike bottles and cans that land in the landfill, kegs are refilled and rotated in the market, ensuring a fresh beer with no packaging waste!”
The CHEERS Act expands the longstanding Section 179D tax deduction for energy-efficient investments, now including keg and tap systems, draft equipment upgrades and relief for lost or stolen kegs. By reducing upfront costs for hospitality businesses, this bill makes it easier for bars and restaurants to modernize their draft beer infrastructure and keep serving fresh, high-quality beer to consumers nationwide.
For more information, please visit CHEERSAct.org or contact Caitlin Harder at charder@beerinstitute.org or (202) 737-2337.
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