Meals & Entertainment ExpensesUnder the One Big Beautiful Bill Act
2/18/2026 - By David Uslan, CPA
The One Big Beautiful Bill Act (OBBBA) made changes to a company’s ability to deduct certain meal and entertainment expenses, especially for meals provided to the employees for the convience of the employer. A chart is provided below, to summarize proper treatment for many types of meal and entertainment expenditures, under the OBBBA.
Our recommendation is to be more diligent in the classification of meal and entertainment expenses of 2026 and beyond. Since some of these expenses will no longer be deductible, these expenses should be segregated into different accounts for tracking (e.g., 0% meals, 50% meals, 100% meals, and non-deductible entertainment).
The meal and entertainment changes under the One Big Beautiful Bill Act (OBBBA) are just one piece of a broader tax landscape shift. For a deeper understanding of how OBBBA may impact your business beyond meals and entertainment, read our overview blog, “Tax Law Impacts: One Big Beautiful Bill Act”.
If you have questions about properly classifying expenses, updating your chart of accounts, or preparing for 2026 and beyond, contact our expert tax team at Saltmarsh to discuss your specific situation.
About the Author | David Uslan, CPA
David is a partner and the tax technical leader with experience across tax, accounting, and advisory services. He began his career in public accounting over 30 years ago, focusing on serving high-net-worth individuals and growth-oriented companies. His primary areas of experience include providing tax and advisory services to clients in the software, real estate, private equity, professional services, technology, and creative services industries.
Related Posts
- Margins & Mindset: A Contractor's Guide to Smarter Financial Growth
- Meals & Entertainment Expenses
- How Accounts Payable Outsourcing Improves Accuracy, Speed, and Internal Controls
- The Hidden Benefits of Accounts Receivable Outsourcing for SMBs
- IRS Releases FAQ on Paper Check Phase-Out
- Construction Accounting Methods Explained: Cash, Accrual, and Percentage-of-Completion
- Stop the Profit Leaks: 6 Gut checks for Contractors
- A Practical Guide to Construction Job Costing for Contractors
- WIP Construction Accounting: How to Read and Use a Work-in-Progress Report
- Saltmarsh Leader Suzanne Bach Joins ABC Florida Gulf Coast Board
- What to Know Before Year-End
- Job Schedules 101: A Smarter Way to Strengthen Construction Finances
- Tax Law Impacts: One Big Beautiful Bill Act
- A Quick Guide to Percent of Completion for Long-Term Construction Contracts
- Four Metrics Your Construction Company Should Start Tracking Today
- WEBINAR: Horror Stories in Employee Safety/Risk Management
- White Paper: Manufacturing Outlook, Leveraging Technology Today
- Webinar Materials: The Cost of Attracting & Retaining Talent in Today's Market
- White Paper: Manufacturing Outlook, Lean Thinking to Reduce Costs
- Biden's Infrastructure Plan: What Is Construction's Opportunity?
- Construction Tax Team Featured in Florida Transportation Builders Association's Magazine
- Five Metrics Your Construction Company Should Start Tracking Today
- GovCon Updates of the Week Part 3
- IRS Extends Certain Tax Filing and Payment Deadlines to May 17
- Suzanne Cox Featured in Mobilization Funding Cash Flow Management Webinar
- View All Articles
