A newly signed tax law removes the long-standing deduction that allowed employers to write off the cost of providing food and beverages to employees. Starting January 1, 2026, companies will be unable to deduct expenses related to office kitchens, break room snacks, coffee stations, and on-site meals—perks once used to boost morale and productivity.
This change could impact nearly half of U.S. employers that currently offer such amenities, particularly tech and finance firms known for lavish snack setups. With the extra cost no longer tax-deductible, some companies may tighten budgets or eliminate these perks entirely, while others could absorb the additional expense to preserve office culture—especially as businesses continue efforts to lure employees back to physical workplaces.
Although restaurants and food service providers remain unaffected (their deductions stay intact), many office-based businesses—such as corporate headquarters, hospitals, and factories—will now face higher operating costs if they maintain snack and meal areas.
While it's too soon to know how companies will respond, experts caution that removing these small but meaningful perks could chip away at workplace culture—just when many employers are trying hardest to make the office feel essential again.