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.
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