Congressman Neil Abercrombie (D-HI) has reintroduced a bill to restore the 80 percent deduction for business meals and entertainment expenses. Currently, just 50 percent of the value of these expenses is tax deductible.
If signed into law, supporters believe the legislation would encourage corporations and their employees to spend more on meals and entertainment while traveling for business. This, in turn, would help local businesses and economies.
"We are grateful to Representative Abercrombie for his leadership in introducing this bill and for his consistent support for America's travel community over the years," said Roger Dow, president and CEO of the U.S. Travel Association, in a statement. "Increasing the deductibility of business meals and entertainment expenses will aid small business owners who use meals to market goods and services, retain customers, and attract new business."
The deduction for business meals and entertainment was reduced to from 80 percent to 50 percent in 1993. Raising it back to 80 percent would boost business-meal sales by $6 billion and create an $18 billion increase to the overall economy, U.S. Travel officials stated, citing National Restaurant Association data.