The CHEERS Act modifies tax depreciation rules to help restaurants, bars, and entertainment venues reduce their equipment costs. Specifically, it allows businesses to depreciate energy-efficient draft alcohol equipment—such as stainless steel or aluminum containers and commercial tap systems—over 15 years instead of longer periods, which accelerates their tax deductions. This applies to equipment installed in U.S. buildings and placed into service after December 31, 2025. The bill provides no direct federal funding but offers tax savings to hospitality businesses by speeding up depreciation write-offs on qualifying alcohol service equipment. The Treasury Department is directed to issue guidance on how the tax rule applies, including for businesses that rent or lease rather than own such equipment.
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