1. ​​​​Does Wisconsin follow the federal treatment of disallowing entertainment, amusement, and recreation expenses?


2. Does Wisconsin follow the federal treatment of disallowing 50% of meal expenses for certain meals provided by employers?


3. Does Wisconsin follow the federal treatment of the 100% deduction for certain meal expenses relating to food and beverage provided by a restaurant?

1. Does Wisconsin follow the federal treatment of disallowing entertainment, amusement, and recreation expenses?

   No. Wisconsin still allows a 50% deduction for entertainment, amusement, and recreation expenses.

2. Does Wisconsin follow the federal treatment of disallowing 50% of meal expenses for certain meals provided by employers?

   No. Wisconsin still allows a 100% deduction for certain meals provided by employers. These meals are for de minimis fringe benefits, which include eating facilities located on or near the business premises of the employer and meals furnished on the business premises of the employer for the convenience of the employer.

3. Does Wisconsin follow the federal treatment of the 100% deduction for certain meal expenses relating to food and beverage provided by a restaurant?

   No. Wisconsin did not adopt sec. 210 of Division EE of Public Law 116-260 (Consolidated Appropriations Act, 2021) relating to increasing the deduction for meal expenses to 100% if the food or beverage is provided by a restaurant and paid or incurred prior to January 1, 2023. Wisconsin allows only a 50% deduction for these meal expenses.

Applicable Laws and Rules

This document provides statements or interpretations of the following laws and regulations enacted as of October 10, 2024: secs. 71.01 and 71.22, Wis. Stats., and secs. 132 and 274, IRC.

Laws enacted and in effect after this date, new administrative rules, and court decisions may change the interpretations in this document. Guidance issued prior to this date, that is contrary to the information in this document is superseded by this document, according to sec. 73.16(2)(a), Wis. Stats.

The department welcomes your input on our guidance. Submit comments on this guidance document.

Guidance Document Number: 100167

October 10, 2024​​