CHICAGO, July 22, 2025 — A little-noticed omission in the 1,000-plus-page federal budget could spell trouble for business-and-industry foodservice operators.
Not included in the so-called One Big Beautiful Bill is a renewal of the write-off businesses can take for onsite foodservice operations; a break included in the tax bill passed in 2017 during Donald Trump’s first administration.
The write-off also extended to the cost of free coffee and snacks offered to employees as perks.
The incentive for employers to offer those employee amenities was scheduled in the 2017 bill to expire at the end of 2025. The expectation was that it would be renewed because the impact on federal tax revenues was relatively negligible.
But no renewal was included in the mega bill that Congress passed in the rush to meet President Trump’s directive to have an approved measure on his desk before the July 4th holiday.
The bill passed virtually along party lines, with only two Republicans in the House of Representatives and three in the Senate breaking ranks to vote against it. The measure passed in the Senate when Vice President J.D. Vance voted “yes” to break a tie.
Trump immediately signed the voluminous bill into law.
Business-and-industry operators say they’re still figuring out the full impact of the re-up omission. For instance, several said they’re unclear if the 2017 bill’s sunset will affect catering.
The 2017 tax break only applied to business-and-industry foodservice, and only to cafeterias and other operations that were located on the tax filer’s premises.
It appeared to have no effect on other types of onsite foodservice operations, such as college dining rooms.
As Managing Editor for IFMA The Food Away from Home Association, Romeo is responsible for generating the group's news and feature content. He brings more than 40 years of experience in covering restaurants to the position.