Two Republican U.S. senators have introduced a bill that would continue to ban federal tax deductions for the cannabis industry – regardless of whether marijuana is rescheduled.
According to Law360, James Lankford of Oklahoma and Pete Ricketts of Nebraska introduced the “No Deductions for Marijuana Businesses Act,” which would essentially kill any substantive tax breaks operators hoped to receive if marijuana status were downgraded from Schedule 1 to Schedule 3 of the Controlled Substance Act.
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Under Internal Revenue Code Section 280E, cannabis operators are prohibited from deducting typical business expenses, such as payroll and marketing, on federal tax returns.
So, in that respect, the senators’ proposal would not change the federal government’s ongoing policy stance regarding 280E, a provision that has wiped more
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