Congress recently passed the Consolidated Appropriations Act, which includes making business meals, to include alcoholic beverages, fully tax deductible. Employers are now able to deduct 100% of their business meal expenses that are incurred in 2021 and 2022.
This means that a business owner can now dine with valued or prospective clients for breakfast, lunch, or dinner and take 100% tax deduction.
Prior, businesses have only been able to deduct 50% of their meal expenses off their federal taxes. The idea behind this 100% tax deduction is to increase spending in restaurants and create more income for employees. It overall is a win-win because companies get tax credit for supporting their local restaurants.