Helicopter view of 2026 meals and entertainment after OBBBA

It’s been three years since we updated our helicopter view of business meals and entertainment deductions. During this time, the One Big Beautiful Bill Act (OBBBA) was passed, and the Tax Cuts and Jobs Act (TCJA) triggered various expirations.

One significant change is that most business meals with prospects and clients are not 100 percent deductible as they were back in 2021 and 2022. As of 2023, they are only 50 percent deductible.

Additionally, many business-generating entertainment deductions, such as the costs associated with playing golf with customers and prospects, were eliminated by the TCJA.

The OBBBA also carved out 100 percent meal deductions for employers that have workers on defined fishing vessels or offshore oil and gas drilling rigs.

To help you better understand the current situation, see the table below outlining what is now permissible under the law for 2026 and beyond.

	Amount deductible for tax year 2026 and beyond
Description	100%	50%	Zero
Restaurant meals with clients and prospects		X
Entertainment such as baseball and football games with clients and prospects			X
Employee meals for convenience of employer, served by in-house cafeteria			X
Employee meals for required business meeting, purchased from a restaurant		X
Meals served at a chamber of commerce meeting held in a hotel meeting room		X
Meals consumed in a fancy restaurant while in overnight business travel status		X
Meals cooked by you in your hotel room kitchen while traveling away from home overnight		X
Break-room coffee, doughnuts, and snacks for employees			X
Meals from a restaurant for employees working overtime			X
Year-end party for employees and spouses	X
Golf outing for employees and spouses	X
Year-end party for customers			X
Meals made on premises for the general public at a marketing presentation	X
Team-building recreational events for all employees	X
Golf or theater outings or football games with your best customer			X
Meals with prospective customers at a country club following your non-deductible round of golf		X
Meals for offshore oil/gas platform workers	X
Meals for qualifying fishing vessel crew and fish processing crew	X

BergerCPAFirst, with over 35+ years of experience, offers comprehensive tax preparation services for individuals and businesses nationwide. Our commitment is to provide personalized attention while ensuring compliance and maximizing tax benefits. If you have any questions or would like to schedule a consultation, please call (201) 587-9200 or send us an inquiry.