CHEERS Act of 2026

This Act may be cited as the Creating Hospitality Economic Enhancement for Restaurants and Servers Act of 2026 or the CHEERS Act of 2026.
Section 168(e)(3)(E) of the Internal Revenue Code of 1986 is amended by striking and at the end of clause (vi), by striking the period at the end of clause (vii) and inserting , and, and by adding at the end the following new clause:
any qualified energy-efficient draft alcohol property.
Section 168(i) of such Code is amended by adding at the end the following new paragraph:
The term qualified energy-efficient draft alcohol property means any property—
which is installed on or in any building which is located in the United States,
which is principally used in the conduct of a trade or business of operating a restaurant, bar, or entertainment venue, and
which is a stainless steel or aluminum container or related commercial tap equipment used for the distribution and sale of alcohol.
The amendments made by subsections (a) and (b) shall apply to property placed in service after December 31, 2025.
The Secretary of the Treasury shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of the amendments made by subsections (a) and (b), including to provide for the appropriate application of section 168 of the Internal Revenue Code of 1986 with respect to taxpayers who rent or lease qualified energy-efficient draft alcohol property (as defined in section 168(i)(20) of the Internal Revenue Code of 1986).