CHEERS Act

The CHEERS Act would expand the energy-efficient commercial buildings deduction (Section 179D) by adding a new category called “qualified energy-efficient draft property.” This category covers stainless steel or aluminum beverage containers (kegs) and related commercial tap equipment used to distribute and sell alcohol, but only when the property is used in operating a restaurant, bar, or entertainment venue and meets the energy-efficiency requirements already used for 179D. If these conditions are met, the draft equipment would be treated as energy-efficient commercial building property for purposes of the deduction. The measure applies to property placed in service after December 31, 2024, and the Treasury would issue regulations to implement the provision, including guidance for taxpayers who lease or rent such equipment. In short, the bill creates a targeted tax incentive to encourage energy-efficiency upgrades in hospitality venues’ draft-beverage systems, potentially lowering tax burdens for eligible businesses that install compliant kegs and tap equipment. The new category is narrow in scope—limited to alcohol-dispensing containers and related tap equipment—and would operate under the existing 179D framework for energy-efficient commercial buildings.