Under the Consolidated Appropriations Act, 2021, business expense deductions for Meals (normally limited to 50%) are temporarily allowed at 100% under specific rules.

• Only applies to
• Amounts paid or incurred after Dec. 31, 2020, and before Jan. 1, 2023
• Paid to a Restaurant
  • a business that prepares and sells food or beverages to retail customers for immediate consumption, regardless of whether the food or beverages are consumed on the business’s premises
• Does not apply to:
• Payments to a business that primarily sells prepackaged food or beverages not for immediate consumption, including a grocery store; specialty food store; beer, wine, or liquor store; drug store; convenience store; newsstand; or a vending machine or kiosk
• Any eating facility located on the employer’s business premises and used in furnishing meals excluded from an employee’s gross income under Sec. 119; or
• Any employer-operated eating facility treated as a de minimis fringe under Sec. 132(e)(2), even if that eating facility is operated by a third party under Regs. Sec. 1.132-7(a)(3).