What is the Cheers Act? What Business Owners Should Know

Image of a judge’s desk, representing the House of Representatives passing of the CHEERS Act in March 2024

In late March of 2024, the CHEERS Act passed the U.S. House of Representatives and is now awaiting consideration in the U.S. Senate. The legislation, introduced by Representatives Darrin LaHood (R-IL) and Steve Horsford (D-NV), aims to support bars, restaurants and entertainment venues with draft beer systems through tax deductions in an effort to restore the hospitality industry post-pandemic.

This legislation, if passed, could mean a revitalization of the hospitality industry and, in turn, a boost for bar and brewery owners serving draft beer. But what exactly does the CHEERS Act mean for business owners? Let’s explore the details of this new Act and how it can impact your establishment.

How the CHEERS Act Could Benefit Your Business

The hospitality industry has faced unprecedented challenges in the wake of the COVID-19 pandemic. From mandated closures to capacity restrictions, bars, restaurants and entertainment venues have struggled to stay afloat. Recognizing the critical role these establishments play in our communities and economy, Representatives Darin LaHood and Steven Horsford have introduced the CHEERS Act as a beacon of hope for revitalization.

Tax Incentives for Sustainable Investments
At the heart of the CHEERS Act lies the expansion of tax incentives for qualifying investments in energy-efficient systems. While the tax code has historically allowed deductions for such investments, the CHEERS Act broadens this scope to encompass keg, tap and draft line property. For business owners operating on tight margins, these tax incentives could translate to significant savings, enabling them to reinvest in their establishments and staff.

Supporting Local Businesses and Communities
Local bars, breweries and restaurants are often pillars of our communities. The CHEERS Act recognizes the importance of these establishments and seeks to provide them with the support they need to thrive. By incentivizing the use of sustainable draft containers and installation property, the legislation not only benefits individual businesses but also fosters a culture of environmental responsibility within the hospitality industry.

Driving Economic Growth and Innovation
As the hospitality industry looks towards recovery, innovation will be key to its success. The CHEERS Act empowers business owners to innovate how they serve beer to customers, opening doors to new opportunities for growth and differentiation. Whether it’s investing in state-of-the-art draft systems or expanding tap offerings, the legislation encourages businesses to adapt to changing consumer preferences and market dynamics.

Building a Sustainable Future
Beyond immediate economic relief, the CHEERS Act lays the groundwork for a more sustainable future. By promoting the use of reusable steel kegs and energy-efficient draft equipment, the legislation aligns with broader efforts to reduce waste and carbon emissions. As consumers increasingly prioritize sustainability, businesses that embrace eco-friendly practices stand to gain a competitive edge in the marketplace.

Takeaway

The CHEERS Act represents a ray of hope for the hospitality industry and is a testament to the resilience and innovation of bar, brewery, and restaurant owners across the nation. As the legislation awaits consideration in the U.S. Senate, now is the time for business owners to familiarize themselves with the new Act and advocate for its passage. Together, we can raise a glass to a brighter, more prosperous future for the hospitality industry.

In an effort to support this, please contact your local representatives with your support.

Stay tuned for updates on the CHEERS Act and its potential impact on your business. At A Head for Profits, we remain committed to supporting bar, brewery and restaurant owners every step of the way.

Cheers to a brighter future for our industry!

Leave a Reply

Your email address will not be published. Required fields are marked *

six + nine =