Starting in 2026, employers will no longer be able to take a tax deduction for the cost of providing an on-site eating facility to employees. The rule was enacted back in 2017 under the Tax Cuts and Jobs Act (TCJA), but with a delayed effective date until 2026. The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, carves out some niche exceptions to this restriction, but most employers will be hit by this limitation.

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