New tax law might END free snacks

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A change in tax law may make companies rethink a popular workplace perk: food and drink.
Starting in 2026, companies will no longer be able to deduct the cost of on-site cafeterias or takeout for workers who stay late. And accountants say the change probably applies to office snacks and coffee, too.

Though the cost of such staff freebies is relatively small in the grand scheme of employee benefits, the potential change in tax law comes as many businesses are trimming expenses in the face of tariffs and economic uncertainty. “Companies are in cost-cutting mode, and if they don’t have some incentives, they will continue to cut back,” said Ellen Kossek, an emerita professor of management at Purdue University. “We’ve seen this in Silicon Valley,” she added, referencing the onetime center of such upmarket perks as unlimited vacation time, on-site hair stylists, deluxe cafeterias and coffee bars.