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. 🦃😊