CHEERS Act of 2026

119th Congress Introduced by Maggie Hassan and 1 co-sponsor

The CHEERS Act would treat qualified energy-efficient draft alcohol property as 15-year depreciation property, easing incentives for U.S. hospitality businesses upgrading dispensin

Introduced in Senate

Summary of Bill: S. 4688 (119th Congress) – CHEERS Act of 2026

Purpose and intent

The CHEERS Act of 2026 aims to modify the Internal Revenue Code to incentivize investment in certain equipment used in the hospitality industry.

Specifically, the bill would classify qualified energy-efficient draft alcohol property as 15-year property for depreciation purposes, potentially extending the depreciation period for such property.

Key provisions and changes

Amendments to Section 168(e)(3)(E):

Add a new category to list 15-year property, explicitly including “qualified energy-efficient draft alcohol property.”

Definitions added to Section 168(i):

Introduce new paragraph (20) defining “qualified energy-efficient draft alcohol property.”
Criteria for qualification:
Located in the United States.
Principally used in conducting a trade or business of operating a restaurant, bar, or entertainment venue.
Stainless steel or aluminum container or related commercial tap equipment used for the distribution and sale of alcohol.

Effective date:

The amendments apply to property placed in service after December 31, 2025.

Regulatory authority:

Treasury Secretary would issue regulations or guidance as necessary to implement the amendments, including guidance for taxpayers who rent or lease qualified energy-efficient draft alcohol property.

Who/what is affected

Hospitality businesses that operate restaurants, bars, or entertainment venues and utilize energy-efficient draft alcohol equipment (e.g., stainless steel or aluminum draft systems, kegs, taps).

Taxpayers that lease or rent qualified energy-efficient draft alcohol property, who would also benefit from clarified depreciation treatment.

Tax professionals and businesses seeking guidance on applying the new 15-year depreciation classification.

Procedural and timeline aspects

Introduced in the Senate on June 4, 2026, by Senator Sheehy, with Senator Hassan as a co-sponsor.

Referred to the Senate Committee on Finance (no further actions listed in the provided text).

Effective date aligns with property placed in service after December 31, 2025, meaning retroactive to the 2026 tax context for applicable purchases.

Potential impact and considerations

Depreciation shift to 15-year property for qualifying equipment could reduce annual depreciation expense (depending on existing schedules) and potentially alter after-tax cash flow for eligible investments.

The broader incentive is targeted at hospitality industry upgrades, energy efficiency, and related equipment modernization.

Businesses planning to acquire or lease energy-efficient draft alcohol equipment after 2025 may benefit from clearer depreciation rules and regulatory guidance from the Treasury.

Note: This summary focuses on the substantive provisions as written. If enacted, the bill would require fiscal analysis and potential impact assessments by the Department of the Treasury and affected industries.