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Transportation-industry per diem. The IRS-approved meal and incidental expenses rate for taxpayers in the transportation industry is $59 for all localities within the CONUS and $65 for all localities outside the CONUS.
Per Diem Allowances. Allow the Full Deductibility of Per Diem Allowances in Construction. Background: Section 274(n) of the Internal Revenue Code currently provides that 50 percent of the amount paid for meals and entertainment are non-deductible business expenses. The IRS has issued Revenue Procedure 2000-39, which sets federal per diem amounts for various locations.