05/21/2026
Break room coffee, drinks and snacks and certain employer provided meals are non-deductible for 2026 and going forward.
This change stems from the Tax Cuts and Jobs Act (TCJA) of 2017, which added IRC Section 274(o). It phases out deductions for certain meals, with the full disallowance (0% deductible) taking effect for expenses paid or incurred after December 31, 2025. 
What This Applies To
• Meals provided on the employer’s business premises for the convenience of the employer (e.g., to keep employees on-site, during overtime, or for productivity). 
• Expenses for employer-operated eating facilities (e.g., company cafeterias or subsidized on-site dining), including related food, beverages, and sometimes operational costs. 
• Many items previously treated as de minimis fringe benefits (e.g., office snacks, pantry items, or occasional free meals). 
Through 2025, these were generally 50% deductible. From 2026 onward, they drop to 0% (nondeductible), even if they remain excludable from employees’ taxable income under Section 119 (convenience of the employer) or as de minimis fringes.
