Sponsors (6)
The bill makes draft-alcohol equipment tax treatment more favorable and predictable for small businesses — improving near-term cash flow — while lowering near-term federal revenue and leaving some leasing tax details uncertain until Treasury issues guidance.
Restaurants, bars, and other small businesses that install or replace qualified draft-alcohol equipment can depreciate that equipment over 15 years, enabling earlier tax deductions and improving cash flow for such businesses.
Businesses that place qualifying stainless steel or aluminum draft containers or tap equipment in service after Dec 31, 2025 receive clearer tax treatment, making investment and tax planning more predictable.
Taxpayers (and therefore the federal government) will likely face higher near-term revenue losses because accelerated cost recovery increases deductions compared with longer depreciation schedules.
Businesses that lease draft equipment may face complexity or uncertainty about tax treatment until Treasury issues implementing regulations, delaying clarity for leasing arrangements.
Based on analysis of 2 sections of legislative text.
Creates a 15-year depreciation class for qualified energy-efficient draft alcohol property (stainless steel/aluminum containers and related tap equipment) placed in service after Dec 31, 2025.
Creates a new 15-year depreciation class under the tax code for "qualified energy-efficient draft alcohol property" — stainless steel or aluminum containers and related commercial tap equipment installed in U.S. buildings and principally used by restaurants, bars, or entertainment venues. The change applies to property placed in service after December 31, 2025, and directs the Treasury to issue implementing regulations, including rules for rented or leased equipment.
Introduced February 20, 2026 by Darin Lahood · Last progress February 20, 2026