Yes, it’s true: You can fully deduct business meals again — but only for a limited time. The newly passed One Big Beautiful Bill brings back the 100% deduction for meals provided by restaurants. This is a big win for small businesses, consultants, sales teams, and anyone who regularly meets clients or travels for work.
What Changed?
Under Section 70421 of the bill, Congress has temporarily restored the 100% tax deduction for business meals that meet the following criteria:
Provided by a restaurant (dine-in, takeout, or delivery all qualify)
Incurred after December 31, 2024, and before January 1, 2027
Must otherwise qualify as a legitimate business expense under IRS rules
So What Can You Deduct at 100%?
Meals with clients or prospects
Meals while traveling for business
Team meals from restaurants (e.g., lunch for staff, client-facing teams)
Takeout ordered for business meetings
Food and beverage provided at company events if purchased from a restaurant
What’s Not Covered?
Grocery store food (not a “restaurant” under IRS definition)
Meals provided on-site by the employer (e.g. in-office cafeteria, catered from non-restaurant sources)
Lavish or extravagant expenses (still disallowed under §274(k))
The Fine Print: What the Law Says
Section 70421(a) of the bill amends IRC §274(n)(2)(D), stating:
“...for amounts paid or incurred after December 31, 2024, and before January 1, 2027, the full amount of the expense for food or beverages provided by a restaurant shall be deductible.”
This mirrors the temporary COVID-era provision from 2021–2022. It’s meant to support the restaurant industry while giving small businesses a boost.
How to Track These Expenses
Make sure your bookkeeping system clearly tags meals from restaurants separately — that’s the only way to take advantage of the 100% deduction. Hedgi AI, for example, uses machine learning to automatically classify these based on vendor and context, so you're ready come tax time.
Bottom Line
From 2025 through 2026, business meals from restaurants are 100% deductible.
After that, we go back to the standard 50% deduction — unless Congress extends the rule again.
Now’s the time to get your expense tracking dialed in.