Under The One Big Beautiful Bill Act, employers’ ability to deduct many of the food and beverage offerings they provide will come to an end this year.
Employer-provided meals — things like coffee and snacks, working meals and overtime meals — will go from a 50% tax deduction to nondeductible at the conclusion of this year, signaling a cost increase for organizations that choose to keep these offerings available. The change comes amid sweeping cuts laid out in Trump’s budget bill, which was signed into law at the beginning of the month.
