Darin LaHood

03/11/2024 | Press release | Distributed by Public on 03/11/2024 11:26

LaHood, Horsford Introduce CHEERS Act to Support Local Business, Restaurants, Bars, and Hospitality Organizations

Washington, D.C. - U.S. Representatives Darin LaHood (R-IL-16), a member of the House Ways and Means Committee, and Steven Horsford (D-NV-04) introduced H.R. 7577, the Creating Hospitality Economic Enhancement for Restaurants and Servers (CHEERS) Act, bipartisan legislation to support local businesses, restaurants, and bars that utilize draft beer systems and help revitalize the hospitality industry.

The CHEERS Act would expand tax incentives for qualifying investments into energy-efficient systems to include keg and tap property, supporting the use of draft lines and keg equipment at restaurants and bars. Draft beer is the most sustainable way for packaging by retailers and suppliers and the legislation would provide immediate relief to local small businesses.

"Illinois has a rich history of craft brewers and local bars from Chicago to Peoria and beyond," said Rep. LaHood. "Many of our local businesses and the hospitality sector at-large are still facing economic challenges. This bipartisan bill will support these local establishments by incentivizing the expansion of tap lines and keg equipment on commercial premises. Local bars and restaurants are an essential part of the identity of our communities in Illinois, and I am proud to lead this effort to revitalize the hospitality sector, support local jobs, generate economic growth, and promote the use of sustainable tap equipment in bars and restaurants."

"Las Vegas is our nation's hospitality and entertainment capital, if not the world. The CHEERS Act would boost not only our smaller bars, clubs, and entertainment venues but also many of our casinos, hotels, and arenas. This will allow many small business owners in my district to grow their business and invest more in their employees. And we will reduce waste created by using smaller, disposable containers at many restaurants, bars and other venues," said Rep. Horsford. "I am proud to join my colleague, Mr. LaHood, in introducing this legislation to boost our local and national economy."

Hospitality groups and industry stakeholders applauded the bipartisan legislation upon introduction.

"The beer industry is committed to supporting its partners in the hospitality industry that were deeply impacted by the pandemic," said Brian Crawford, President and CEO of the Beer Institute. "That's why we applaud Reps. LaHood and Horsford for introducing the CHEERS Act, which will provide relief to your favorite local pubs, bars and restaurants nationwide that serve delicious, ice-cold beer on draft. Beer is America's favorite alcohol beverage, and with draft systems in tens of thousands of establishments across the country, this bill will allow businesses to create more jobs and stimulate local economies from coast to coast."

"The CHEERS Act would give restaurant and bar owners new tools to innovate how they serve beer to customers," said Sean Kennedy, Executive Vice President for Public Affairs of the National Restaurant Association. "The result would be more consumer choice, strengthened sustainability options, and needed support for restaurant owners in every neighborhood."

"America's restaurants and bars are important to their local communities and play a critical role in a vibrant, safe and competitive U.S. alcohol marketplace," said Craig Purser, President and CEO of the National Beer Wholesalers Association. "Unfortunately, challenges from COVID, labor shortages and inflation have hit them especially hard. Beer distributors understand the challenges these businesses face as they seek to build back. The CHEERS Act will allow beer retailers to make important investments in draught beer to help revitalize these important community businesses. On behalf of America's beer and beverage distributors, we thank Representatives Darin LaHood and Steven Horsford for their support of the hospitality industry."

"Small and independent craft brewers know all too well the impacts of the pandemic on the hospitality industry," said Bob Pease, President and CEO of the Brewers Association. "With 30% of all draft beer sold produced by craft brewers, restaurants, bars, and retail partners are integral parts of the brewing community, and healthy on-premise business and draught service are crucial to the overall health of small and independent craft brewers. We enthusiastically support the introduction of the CHEERS Act and thank Congressmen LaHood and Horsford for supporting legislation that will encourage economic growth and help these important partners."

"Draft beer sales provide a distinctively on-premise opportunity to attract and welcome consumers to local bars and taverns," said John Bodnovich, Executive Director of American Beverage Licensees. "These small beverage businesses, which often serve as important 'third places' where people can visit with friends and relax in a familiar setting. Their success is vital to job creation, economic growth and American hospitality culture. We appreciate Reps. LaHood and Horsford introducing the CHEERS Act, which recognizes the importance of our nation's bars and taverns and helps as they continue to navigate the current economic environment."

"The hospitality industry is in many ways at the center of our communities and our economy," said Dan Vorlage, Executive Director of the Steel Keg Association. "Because these local businesses operate with tight margins and other pressures, it is a challenge to make up-front investments in equipment that unlock lower costs and sustainability benefits over time. The CHEERS Act will make draft beverage systems more affordable, encouraging the use of efficient and sustainable, reusable steel kegs. We raise a glass to the Beer Institute, Reps. LaHood and Harsford, and all of the leaders rallying to support pubs, bars and restaurants."

"The American Cider Association recognizes that healthy draft sales are connected to a thriving hospitality sector and are critical to the future of the cider industry," said Michelle McGrath, CEO of the American Cider Association. "Draft cider represents 60% of hard cider consumed at establishments, and on-premise consumption is an important gateway for consumer adoption of cider. Restaurants, neighborhood pubs, taprooms, sports arenas, bars, movie theaters and more are all important to the commercial cider ecosystem. We appreciate that the CHEERS Act will support investments by draft accounts in new, energy-efficient draft equipment. Relief for the hospitality industry is very needed right now, and the CHEERS Act will help provide some of that relief."

"As the hospitality industry continues to navigate the long-lasting impacts of the COVID-19 pandemic, the CHEERS Act represents a crucial lifeline for bars and restaurants, offering them much-needed tax relief to help revitalize their businesses," said Matthew Haller, President and CEO of the International Franchise Association. "This legislation not only supports the recovery of on-premise establishments but also encourages sustainability and innovation within the industry. We applaud Reps. LaHood and Horsford for their leadership in championing this initiative, which will undoubtedly provide a significant boost to our franchise members and the broader hospitality sector.

"In the wake of the ongoing pandemic, the independent restaurant and bar community has grappled with a notable decline in draft beer sales. This unfortunate trend presents yet another significant challenge to the profitability of these establishments that operate on razor-thin margins. Recognizing the pressing need for support, the Independent Restaurant Coalition endorses the CHEERS Act," said Erika Polmar, Executive Director of the Independent Restaurant Coalition. "We are grateful for the dedicated champions of this vital initiative, Reps. LaHood and Horsford, for taking this important step towards addressing the economic challenges faced by restaurants and bars and urge Congress to act quickly."

"BeerBoard proudly endorses the proposed CHEERS Act, sponsored by Reps. Darin LaHood and Steven Horsford," said Mark Young, Founder and CEO of BeerBoard. "It is exciting to see this bill incentivize and support the adoption of technology and advanced equipment systems by on-premise retailers and beer suppliers. As the leader in technology for the three tiers of the hospitality industry, BeerBoard continues to work to unite the industry, enhance efficiency and drive improved revenues for all. The CHEERS Act will play a major role in that effort."

Background:

  • Since 2005, the tax code has allowed for the deduction for qualifying investments in energy-efficient systems on commercial property under Section 179D.
  • The Cheers Act would expand the code section to apply to new keg, tap, and draft line property on commercial property in bars, restaurants, and entertainment venues.
  • As many local and small businesses continue to recover from the effects of the pandemic, the CHEERS Act incentivizes the use of sustainable draft containers and installation property, providing relief to small businesses who need it most.

Full text of the legislation can be read HERE.