As we head into Thanksgiving, many construction business owners start planning holiday lunches, crew appreciation events, or year-end parties. It’s a great way to thank your team — and yes, some of it is tax-deductible.

Here’s a quick breakdown to keep you compliant and maximize your deductions:

🟢 100% Deductible: Employee Holiday Parties

Good news — company-wide events for employees are fully deductible, even after all the meal deduction changes over the last few years.

This includes:

Thanksgiving lunches for the crew

Holiday appreciation dinners

Year-end company parties

On-site catered meals for employees

Key requirement:It must be primarily for the benefit of employees, not owners or highly compensated individuals.

So if you host a Thanksgiving lunch for your field crews, office staff, and shop team — that’s 100% deductible.

❌ Not Deductible: Owner-Only or Executive-Only Meals

If the “holiday event” is just:

You (the owner)

Partners

Shareholders

Highly compensated employees

…then it’s not fully deductible as a company event.These fall back under the 50% meal deduction — or sometimes 0% if it doesn’t qualify as business-related.

⚠️ TLDR:

If you’re throwing a Thanksgiving or holiday event to appreciate your crews — feed them well and keep the receipts. The IRS still allows a full deduction, and it’s a great way to give back to the people who keep your projects running.

Wishing you all a safe, restful, and meaningful Thanksgiving with your loved ones. 🦃😊

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.