Every industry has its own nuances. We take that into consideration and approach business solutions with the specific lens required of your field. Our teams are comprised of talent with relevant experience and we’re prepared to meet every challenge.
What do you actually do with AI? In the final episode of this three-part series, Dr. Drew Brannon and Michael Wolinsky move from reflection to action, exploring how individuals and organizations can begin using AI effectively.
CMS Rural Health Transformation Program: Early lessons about compliance, capacity, and implementation
Early Rural Health Transformation Program (RHTP) recipients are learning that compliance, capacity, and implementation demands begin the moment an award is won.
The Hidden Cost of Task Switching
Ever finish a meeting and struggle to focus on the task in front of you?
What a growth mindset in construction can do: Building future leaders and stronger companies
Learn how a growth mindset helps construction companies develop future leaders, strengthen culture, improve retention, and increase long-term business value.
AI Strategy Starts with People (Part 2)
AI adoption isn't as simple as choosing a tool and training your team to use it.
Every industry has its own nuances. We take that into consideration and approach business solutions with the specific lens required of your field. Our teams are comprised of talent with relevant experience and we’re prepared to meet every challenge.
What do you actually do with AI? In the final episode of this three-part series, Dr. Drew Brannon and Michael Wolinsky move from reflection to action, exploring how individuals and organizations can begin using AI effectively.
CMS Rural Health Transformation Program: Early lessons about compliance, capacity, and implementation
Early Rural Health Transformation Program (RHTP) recipients are learning that compliance, capacity, and implementation demands begin the moment an award is won.
The Hidden Cost of Task Switching
Ever finish a meeting and struggle to focus on the task in front of you?
What a growth mindset in construction can do: Building future leaders and stronger companies
Learn how a growth mindset helps construction companies develop future leaders, strengthen culture, improve retention, and increase long-term business value.
CMS Rural Health Transformation Program: Early lessons about compliance, capacity, and implementation
Lorem ipsum dolor set
What a growth mindset in construction can do: Building future leaders and stronger companies
Lorem ipsum dolor set
Most companies don't need a better budget. They need a planning system
Lorem ipsum dolor set
How a healthcare organization scaled IT leadership through Office of the CIO services
Lorem ipsum dolor set
Understanding the Cash vs. Tax Carry Mismatch in Private Equity Funds
Lorem ipsum dolor set
The One Big Beautiful Bill Act (OBBBA) brings new rules for meals and entertainment deductions beginning in tax years after December 31, 2025. While the categories haven’t changed much, the deductibility rules have. For business owners, this means far fewer employer provided meals will qualify. Only a limited set of specific situations will still allow a deduction under the new law.
At a Glance
Entertainment costs stay nondeductible (with only a few narrow exceptions).
Business meals remain 50% deductible, but you still need proper documentation and a clear business purpose.
Employer-provided meals become mostly nondeductible, including snacks, coffee, overtime meals, and meals served in on-site cafeterias. Exceptions include:
Meals provided by restaurants to their employees
Meals on fishing vessels
Meals sold to the public at full price in employer-operated cafeterias
Below is a table summarizing the changes:
Action Steps for Employers
Since the OBBBA significantly limits the deductibility of employer-provided meals, most businesses will need to make some operational and accounting adjustments. As you prepare for the 2026 tax year, consider the following:
Review how your company currently provides meals and snacks. Identify where food is being offered (e.g., break rooms, cafeterias, meetings, overtime support) and determine which items will no longer be deductible.
Update internal policies and communication. Employees may need clarity on what qualifies as a business meal going forward. Simple updates to handbooks, expense policies, or manager guidance can prevent confusion.
Adjust your accounting and tax processes. You may need new general ledger categories, revised tracking procedures, and updated tax provision and return calculations to reflect the new limitations.
Evaluate operational and financial impact. For companies with cafeterias or regular meal offerings, it may be worth assessing costs, pricing, and whether changes to operations make sense under the new rules.
We Can Help
The Elliott Davis team helps business owners adapt to the new tax requirements and the strategic decisions that follow. We can assist with policy updates, recordkeeping, and planning so you’re well prepared for the 2026 tax year. Contact us to discuss how these changes may affect your business and what steps to take next.
The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.
Is your BSA/AML system working for you? How to evaluate effectiveness
Explore how fintechs and financial institutions can evaluate system performance, reduce false positives, and meet regulatory expectations through model validation.
June 30, 2025
Tax Thursday in Three: June 26, 2025
Elliott Davis provides quick updates on the 2025 tax legislation package
Video
June 26, 2025
Are you using the right investment strategy?
Compare real estate funds vs. syndications, explore tax-efficient investment vehicles, and learn how to structure single-member LLCs, REITs, and 1031 exchanges to align with investor goals.
Article
June 25, 2025
Succession planning – Tax implications of buying or selling in a partnership
Understand the tax implications of buying or selling a partnership or LLC. Learn how ownership unit sales, asset transactions, and purchase price allocations impact taxes for both buyers and sellers. Explore key planning considerations to optimize tax outcomes.
Article
June 23, 2025
Top 5 fundraising and initial investment questions for smart tax structuring
Discover the top 5 tax structuring questions fund managers should ask during fundraising and initial investment to align investor expectations, choose the right entity structure, and plan for growth.
June 17, 2025
Trends in banking: Risk, regulation, and readiness
Explore how banks are adapting to shifting regulations, rising cybersecurity threats, and liquidity pressures in 2025. Learn how to strengthen internal audit strategies, navigate CECL model challenges, and prepare for new examiner expectations.