Sponsors (6)
The bill makes it cheaper and administratively clearer for bars and restaurants to invest in draft-alcohol equipment by shortening depreciation to 15 years, at the cost of modest near-term federal revenue loss and temporary uncertainty for leasing until Treasury guidance is issued.
Small business owners (restaurants, bars, entertainment venues) who install or replace qualified draft-alcohol equipment after Dec. 31, 2025 can depreciate those assets over 15 years, producing larger near-term tax deductions and lowering taxable income when making these investments.
Businesses and taxpayers that place qualifying stainless-steel or aluminum draft containers or tap equipment in service after Dec. 31, 2025 receive clearer tax treatment for those assets, improving the ability to plan investments and claim deductions.
Taxpayers generally (and thus federal revenues) will face higher near-term revenue losses because accelerated cost recovery increases deductions compared with longer depreciation periods.
Taxpayers who lease qualifying 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.
Adds a 15-year depreciation class for qualifying energy-efficient draft-alcohol containers and tap equipment placed in service after Dec 31, 2025, and directs Treasury to issue implementing rules.
Creates a new 15-year recovery class for specified energy-efficient draft alcohol equipment (stainless steel or aluminum containers and related commercial tap equipment) used mainly in 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 leased or rented equipment. The amendment modifies the Internal Revenue Code's depreciation rules so qualifying draft-alcohol property is depreciated over 15 years instead of the existing class life, effectively accelerating tax benefits for owners or operators who install this equipment.
Official title: To amend the Internal Revenue Code of 1986 to classify qualified energy-efficient draft alcohol property as 15-year property for purposes of depreciation.
Introduced February 20, 2026 by Darin Lahood · Last progress February 20, 2026