HB3325, the CHEERS Act, would amend section 179D of the Internal Revenue Code to treat certain “qualified energy-efficient draft property” as energy efficient commercial building property for purposes of the energy efficient commercial buildings deduction. In practical terms, the bill creates a new tax incentive for restaurants, bars, and entertainment venues that purchase qualifying stainless steel or aluminum draft containers or related commercial tap equipment used to distribute and sell alcohol.
To qualify, the property must meet existing energy-efficiency requirements and be used principally in the operation of a restaurant, bar, or entertainment venue. The bill also directs the Treasury Department to issue regulations or guidance, including rules for taxpayers that rent or lease the qualifying property. The amendment would apply to property placed in service after December 31, 2024.
Impact
The bill would expand the scope of the federal energy efficient commercial buildings deduction under Internal Revenue Code section 179D by adding a new category of eligible property tied to draft beer and alcohol dispensing equipment. This would affect taxpayers in the hospitality industry—especially restaurants, bars, breweries, and entertainment venues—by potentially allowing them to claim a tax deduction for qualifying kegs, containers, and tap equipment. It would also require the IRS/Treasury to administer new rules for leased or rented property and to define how the new deduction applies in practice.
Sentiment
Based on the bill text and available context, the measure appears to be framed as a pro-hospitality, pro-business tax incentive with bipartisan sponsorship from members of the House. There is no recorded committee debate or vote history in the provided materials, so there is no evidence of formal opposition or support beyond the bill’s introduction and referral to the Ways and Means Committee. The overall tone is policy-oriented and supportive of restaurant and bar operators.
Contention
The main potential points of contention are likely to be whether draft beer and alcohol dispensing equipment should be treated as energy-efficient commercial building property at all, and whether the tax benefit is an appropriate use of the energy-efficiency deduction. Critics could question the fit between the deduction’s original purpose and hospitality equipment, while supporters would likely emphasize reduced costs for small businesses and modernization of beverage service infrastructure. Another possible issue is administrative complexity, especially for leased equipment and for determining which containers or tap systems qualify.