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Congressman Introduces Bill to Increase Business Meals Expense DeductionJuly 24, 2009 By: Travel Agent Central Contributor
The U.S. Travel Association today praised Representative Neil Abercrombie (D-HI) for re-introducing a bill to restore the 80 percent deduction for business meals and entertainment expenses. Currently, only 50 percent of the value of these expenses is tax deductible.
"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. "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."
In 1993, the allowable deduction for business meals and entertainment was reduced from 80 percent to 50 percent. According to National Restaurant Association research, raising the deduction to 80 percent would boost business meal sales by $6 billion and create an $18 billion increase to the overall economy.