CHEERS Act of 2026

Key Points

• A bipartisan group in Congress introduced a bill to change how restaurants, bars, and entertainment venues pay taxes on their drink equipment. It specifically targets stainless steel or aluminum containers and the tap systems used to serve alcohol.
• The policy allows business owners to write off the cost of this equipment over 15 years. This helps businesses manage their cash flow by providing a predictable way to lower their taxable income as their equipment gets older and loses value.
• By making it easier to afford new tap systems, the bill encourages businesses to move away from single-use bottles and cans. This can help reduce waste and support the hospitality industry, which includes many small, local businesses in communities across the country.
• These changes would apply to any equipment installed and used after December 31, 2025. The Treasury Department would be responsible for creating the specific rules to make sure businesses and those who lease equipment can follow the new law correctly.

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