PorchDrinking.com: Examining the CHEERS Act
Earlier this month, two US Congressmen introduced H.R. 7577, the Creating Hospitality Economic Enhancement for Restaurants and Servers (CHEERS) Act, designed to invigorate and further support local hospitality businesses, like bars, restaurants and entertainment venues, by providing tax incentives to organizations that invest in upgrades for their draft beer systems. The bipartisan legislation aims to revitalize the On-Premise community by providing financial breaks for small businesses still hurting from shutdowns in 2020 and slogging through current economic conditions.
While existing tax codes do allow for deductions on qualified draft beer equipment, U.S. Representative Darin LaHood (R-IL-16) and Steven Horsford (D-NV-04) are hoping that an expansion on these 2005 allowances will provide additional incentives for restaurants and bars to invest in new draft beer equipment. Proponents claim that draft beer systems are both environmentally and fiscally responsible, and small business owners are the ones who need these breaks the most. The CHEERS Act at first glance sounds like the giant step that small hospitality businesses need to move forward, but with any new legislation, some potential risks must be considered.