H.R.3325 - Creating Hospitality Economic Enhancement for Restaurants and Servers Act; CHEERS Act (119th Congress)
Summary
H.R.3325, also known as the CHEERS Act, proposes an amendment to the Internal Revenue Code of 1986. The amendment aims to classify energy-efficient kegs as efficient commercial building property. This would make them eligible for the energy-efficient commercial buildings deduction.
The bill specifically targets stainless steel or aluminum containers and related commercial tap equipment used for alcohol distribution in restaurants, bars, and entertainment venues. The intended effect is to incentivize the use of energy-efficient equipment in the hospitality sector.
The bill was introduced in the House of Representatives on May 13, 2025, and referred to the Committee on Ways and Means.
Expected Effects
If enacted, the CHEERS Act would provide tax benefits to businesses in the hospitality industry that invest in energy-efficient kegs and related equipment. This could lead to a reduction in energy consumption within these businesses.
The change could encourage wider adoption of energy-efficient technologies in the restaurant and bar sector. It may also spur innovation in the design and manufacturing of such equipment.
Ultimately, the Act aims to reduce the environmental impact of the hospitality industry while providing economic benefits to businesses.
Potential Benefits
- Reduced Energy Consumption: Encourages the use of energy-efficient equipment, leading to lower energy consumption in restaurants and bars.
- Tax Benefits for Businesses: Provides financial incentives for businesses to invest in environmentally friendly equipment.
- Support for Hospitality Sector: Offers targeted support to restaurants, bars, and entertainment venues.
- Potential for Innovation: May stimulate the development of more energy-efficient technologies for the beverage industry.
- Environmental Sustainability: Contributes to broader environmental sustainability goals by reducing the carbon footprint of the hospitality sector.
Potential Disadvantages
- Limited Scope: The bill focuses narrowly on energy-efficient kegs, potentially overlooking other areas for energy efficiency in the hospitality sector.
- Complexity in Implementation: Defining and verifying "qualified energy-efficient draft property" may create administrative challenges.
- Potential for Abuse: There is a risk that businesses might misclassify equipment to claim the tax deduction.
- Modest Impact: The overall impact on national energy consumption may be relatively small.
- Revenue Loss: The tax deduction could result in a small reduction in government revenue.
Constitutional Alignment
The CHEERS Act appears to align with the general welfare clause of the Constitution (Preamble), as it aims to promote economic activity and environmental sustainability. Congress has the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States (Article I, Section 8, Clause 1).
The Act falls under the purview of Congress's power to regulate commerce and enact tax laws. There are no apparent conflicts with individual rights or freedoms guaranteed by the Constitution or its amendments.
However, the specific details of implementation and enforcement would need to be carefully considered to ensure compliance with constitutional principles.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).