CHEERS Act: Draft Alcohol Equipment

Summary#

This bill would change the tax depreciation rules for certain draft alcohol equipment. It adds "qualified energy-efficient draft alcohol property" to the list of items that are 15-year depreciable property under section 168 of the Internal Revenue Code. The bill defines that property as stainless steel or aluminum containers or related commercial tap equipment used to distribute and sell alcohol, installed on or in a building in the United States and principally used by a restaurant, bar, or entertainment venue. The change would apply to property placed in service after December 31, 2025. The Secretary of the Treasury would write rules or guidance needed to apply the change, including how it applies when the equipment is rented or leased.

What it means for you#

• Owners or operators of restaurants, bars, and entertainment venues who install the listed stainless or aluminum draft containers or commercial tap equipment could treat those items as 15-year depreciable property for tax depreciation purposes.
• The rule applies only to qualifying equipment placed in service after December 31, 2025.
• The Treasury Department will issue regulations or guidance to explain how the rule works, including for leased or rented equipment.

Expenses#

No publicly available information on budgetary effects, cost estimates, or projected revenue changes is included in the bill text or provided metadata.

Proponents' View#

No publicly available information in the bill text or metadata describes proponents' supporting statements or detailed arguments.

Opponents' View#

No publicly available information in the bill text or metadata describes opponents' statements or detailed objections.