Congress quietly expands tax breaks for bars and restaurants
S. 1732 — CHEERS Act · Filed by Tim Sheehy (R-MT) · 1 cosponsor · Introduced May 13, 2025 · Referred to committee
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What it does
This bill allows bars, restaurants, and entertainment venues to claim a federal tax deduction for energy-efficient kegs and draft equipment (stainless steel or aluminum containers and commercial tap systems). Currently, the tax code's energy-efficient building deduction does not cover these items; the bill adds them to the list of qualifying property, letting businesses deduct the cost of upgrading to efficient draft systems.
Why we flagged it
The bill's operative mechanism is a narrow tax deduction carved out for energy-efficient draft equipment used in bars and restaurants. It is not a broad energy-efficiency incentive but a sector-specific tax benefit.
What the text implies
- The deduction applies to both owned and leased equipment (per regulatory guidance language), potentially allowing lessors and equipment-rental companies to capture tax benefits intended for end-user businesses.
- No minimum efficiency standard or performance metric is specified in the bill text; the Secretary must define what qualifies as 'energy efficient' via regulation, creating post-enactment uncertainty about scope.
The full analysis lists 4 implications of this text.
Who stands to gain
bars and restaurants; entertainment venues; commercial draft equipment manufacturers and suppliers