### Question
What does no-additional-cost service mean?


### Answer
**No-additional-cost service** has the following meaning in *26 U.S.C. § 132*:

> any service provided by an employer to an employee for use by such employee if—



(1) such service is offered for sale to customers in the ordinary course of the line of business of the employer in which the employee is performing services, and



(2) the employer incurs no substantial additional cost (including forgone revenue) in providing such service to the employee (determined without regard to any amount paid by the employee for such service)

#### Citation:
  - *26 U.S.C. § 132*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART III-ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME**

