State-legal cannabis companies would be shielded from the restrictions of 280E
House Rep. Earl Blumenauer (D-OR) reintroduced a bipartisan proposal yesterday that seeks to let state-licensed cannabis companies throughout the country take the standard tax deductions afforded to any normal U.S. business. Originally co-sponsored by Reps. Blumenauer, Nancy Mace (R-SC), and Barbara Lee (D-CA), the Small Business Tax Equity Act addresses IRS Code Section 280E, a 1982 provision that prohibits the standard business tax deductions for operations associated with illegal drug trafficking and which — because the plant remains a federally scheduled substance — has vexed modern, state-legal cannabis operators for years.
If approved, the bill would exempt state-legal cannabis companies from the restrictions of 280E. The proposal has been introduced in previous sessions but never advanced.
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