Temporary 100% Deduction of Business Meals Proposed by Senate Republicans

Senate Republicans proposed a series of bills on July 27 to address the current economic impact of the coronavirus. These bills are still in the negotiating stages, and it remains to be seen what the final form of legislation will look like.

One interesting provision that is proposed would provide a temporary allowance to deduct 100% of all business-related food and beverage expenses provided by a restaurant that are paid or incurred by businesses before January 1, 2021. This provision is aimed at assisting the hospitality industry, which has been severely impacted by the coronavirus pandemic, although it would also give a break to any business that receives the 100% deduction.

There has not been a significant amount of business entertaining due to the coronavirus pandemic, but hopefully, if the virus were to recede before the end of the year, businesses could begin to increase their business prospecting and client entertainment to take advantage of this full deduction – even if it is only through the end of the year. The inclusion of this proposed deduction in the bill leaves a window open for future legislation aimed at helping the hospitality industry, which is in dire need of an economic boost.

Please stay tuned for updates to this proposed legislation as it evolves, as Congress works toward final passage of a second coronavirus economic relief bill or series of bills.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2021 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on

Are Energy Companies Eligible for the Employee Retention Credit?
OMB Releases Holiday Present
Be Aware of Interplay Between the ERC, PPP and Other Payroll-Related Incentives
Consolidated Appropriations Act as it Relates to Individuals
Consolidated Appropriations Act – 501(c)(6) Organizations Qualify for PPP Funding
Meal and Beverage Expenses Fully Deductible for the Next Two Years

Register to receive our weekly newsletter with our most recent columns and insights.

Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us

contact us

Map of Pittsburgh Office

One PPG Place, Suite 1700
Pittsburgh, PA 15222

p:412.261.3644     f:412.261.4876

Map of Columbus Office

65 East State Street, Suite 2000
Columbus, OH 43215

p:614.621.4060     f:614.621.4062

Map of Washington Office
Washington, D.C.

1660 International Drive, Suite 600
McLean, VA 22102