Legislation introduced to support draft beer businesses

On Monday, U.S. Reps. Darin LaHood (R-IL) and Steven Horsford (D-NV) introduced legislation they said would support businesses using draft beer systems, as well as help revitalize the hospitality industry.

© Shutterstock

The Creating Hospitality Economic Enhancement for Restaurants and Servers (CHEERS) Act, would include keg and tap property into the list of qualifying investments that receive tax incentives for investments into energy-efficient systems. The Congressmen said draft beer is the most sustainable way of packaging by retailers and suppliers, and the legislation would provide immediate relief to local small businesses.

“Illinois has a rich history of craft brewers and local bars from Chicago to Peoria and beyond,” LaHood said. “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.”

Currently, the tax code allows for deductions for qualifying investments in energy-efficient systems on commercial property. The CHEERS Act would expand the code section to apply to new keg, tap and draft line property on commercial property in bars, restaurants and entertainment venues, allowing small and local businesses to further recover from the effects of the pandemic, officials said.

The legislation is supported by a number of hospitality industry groups and stakeholders.

“The beer industry is committed to supporting its partners in the hospitality industry that were deeply impacted by the pandemic,” Brian Crawford, President and CEO of the Beer Institute, said. “That’s why we applaud Reps. LaHood and Horsford for introducing the CHEERS Act, which will provide relief to your favorite local pubs, bars and restaurants nationwide that serve delicious, ice-cold beer on draft. 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.”