A popular workplace perk — free office snacks — may be on the chopping block after President Trump’s newly signed tax law eliminated a longstanding deduction for employer-provided meals.
Starting Jan. 1, US companies will no longer be able to deduct the cost of snacks, coffee or on-site lunches provided to employees.
The change, which received little attention during the legislative process, is part of Trump’s Big Beautiful Bill that he signed into law on July 4.
The legislation maintains the scheduled expiration of the food deduction, a move originally set in motion by Trump’s 2017 tax law, which had halved the deduction and scheduled its full elimination at the end of this year.
The loss of the deduction affects a perk that has become emblematic of modern office culture. Initially popularized during Silicon Valley’s dot-com boom, the freebies have become commonplace across various sectors, including Wall Street banks and tech companies.
According to the Society for Human Resource Management, 44% of US employers now offer free snacks — double the rate from a decade ago.
Eliminating the deduction is expected to generate $32 billion in new tax revenue from employers through 2034, according to the Joint Committee on Taxation.
But the practical impact on companies remains unclear, as many have yet to disclose whether they will cut back on employee food offerings or absorb the additional cost.
Tech and finance, two of the most lucrative sectors in the economy, stand out for the generous office perks that are offered to employees.
Google sets the standard with gourmet cafeterias, all-day meals and snack kitchens. Meta and Apple also offer free snacks and on-site meals, with Apple focusing on health and wellness.
LinkedIn adds catered meals and sends snack boxes to remote staff, while Indeed provides unique, around-the-clock snack options.
In finance, JPMorgan Chase offers 24/7 “Snack Spots” and healthy options, and Goldman Sachs provides stocked pantries and after-hours meal stipends.
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Some sectors, however, were spared. Alaska’s fishing industry secured an exemption in the final version of the bill, a move aimed at securing the support of Sen. Lisa Murkowski (R-Alaska).
Maine’s lobstermen, by contrast, did not receive similar treatment after Sen. Susan Collins (R-Maine) declined to support the legislation. The bill ultimately passed with Vice President JD Vance casting the tie-breaking vote.
Restaurants also retained their longstanding ability to deduct the cost of meals provided to staff. But the benefit is now off-limits for most other employers, including hospitals, factories and office-based businesses that have traditionally offered free or subsidized food as a means of boosting morale and encouraging longer hours.
Free food has long been viewed by companies as a tool for improving workplace culture.
Google co-founder Sergey Brin is famously quoted as instructing office designers to ensure no employee was more than 200 feet from food, underscoring the belief that snacks and casual eating spaces help facilitate collaboration and productivity.
Despite the looming cost increase, some in the food services sector are not anticipating a major disruption.
Ali Sabeti, chief executive officer of San Francisco-based corporate catering firm ZeroCater Inc., said his company weathered the 2017 reduction in the deduction without losing clients — and he expects the same this time.
“It’s pretty inelastic,” Sabeti told Bloomberg News.
“When you take a tax deduction away, the cost is going to go up, but companies will continue to spend, just like if you took away a deduction on a laptop.”
“The Trump administration’s rapid deregulation and the One Big Beautiful Bill’s pro-growth provisions like full equipment expensing will help turbocharge economic and investment growth — growth that will yield better pay, benefits, and perks for American workers than any one-off deduction,” White House spokesperson Kush Desai told The Post.
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