05/14/2026
The Skinny on “Meals and Entertainment” in 2026
Since the enactment of The One Big Beautiful Bill (OBBB) last summer, we have had no shortage of questions from clients concerning the new provisions, which eliminated much of the old Tax Cuts and Jobs Act (TCJA). The OBBB, also referred to as The 2025 Act, considerably affects previous deductions for business “Meals and Entertainment”—terminating some while increasing others. For example, the new bill carves out meal deductions at 100-percent for employers with crews on offshore oil and gas rigs and qualifying fishing vessels. Many business-generating entertainment deductions, such as the cost associated with playing golf with customers and prospects have been cut permanently.
Check out our table - as in tax table, not dinner table, affecting “Meals and Entertainment” items for 2026 and beyond.
While the chart covers a range of scenarios affecting daily business activities, we believe key takeaways include:
• Employee meals served by an in-house cafeteria
• Break-room coffee and snacks
• Meals purchased from a restaurant for required business meetings
• Restaurant meals with clients and prospects AND meals consumed during overnight business travel
These changes can certainly be confusing and overwhelming. Don’t be misled! For further assistance on these and other new tax provisions, contact our office or your personal tax advisor.
