Under the newly enacted One Big Beautiful Bill Act, many tax provisions from the Tax Cuts and Jobs Act (TCJA) have been extended or made permanent. However, not all favorable deductions are here to stay.
One key provision that will expire starting in 2026 is the business meal deduction for meals provided for the employer’s convenience and de minimis fringe benefit meals. Here’s what businesses need to know, and how to prepare.
These are meals provided on the employer’s premises for the benefit of the business, not just to be generous.
Hospitals or emergency services, where staff must remain onsite and available at all times.
Businesses with short meal breaks that don’t allow time for employees to leave the premises.
Remote job sites without access to nearby restaurants.
50% of the cost of these meals is deductible.
No deduction will be allowed for these meals.
These are low-cost or occasional food items given to employees, where the administrative burden of tracking them outweighs the value.
Coffee and snacks in the break room
Donuts at staff meetings
Pizza during a team training session
These meals are 100% deductible.
They will be non-deductible altogether.
The change may seem small, but the cumulative costs, and loss of deductions, can add up quickly for employers who regularly provide meals onsite or for meetings. As we look ahead to the 2026 tax year, businesses should:
While the One Big Beautiful Bill made permanent several business-friendly tax rules, it also quietly tightened others; including meal expense deductions that many employers have long relied on.
Now is the time to start planning for these changes and ensure you’re making the most of your allowable deductions through 2025.
Need help understanding how this change could impact your business? Contact an Alloy Silverstein professional. We’re here to guide you through every legislative twist and turn.
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Associate Partner
Julie has over 20 years of experience in public and private accounting, representing varied clientele including the medical, legal, and real estate industries and trusts.
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