Federal Bill Would Prevent Companies from Tax Relief if Cannabis is Rescheduled – Ganjapreneur | Where to buy Skittles Moonrock online

Oklahoma Sen. James Lankford (R) last week introduced legislation to prohibit cannabis businesses from deducting business expenses from their taxes. The measure would apply to cannabis businesses even if cannabis is rescheduled under the federal Controlled Substances Act to lower than a Schedule I or II drug – a planned move under the administration of former President Joe Biden (D).

“Marijuana doesn’t make our families stronger, our streets safer, or our workplaces more productive. Businesses who sell federally illegal drugs – including marijuana businesses – shouldn’t get federal tax breaks. This bill clarifies federal tax law to make sure a federally illegal product does not have a federally legal tax deduction.” — Lankford in a press release

The proposal is co-sponsored by Nebraska Sen. Pete Ricketts (R).

Jed Green, of Oklahomans for Responsible Cannabis Action, told KOCO 5 that Lankford’s proposal is “basically already in place” as state-legal cannabis businesses file federal taxes under Section 280E, which prohibits normal business deductions.

“What that means is that some growers can deduct taxes. However, your dispensaries, any advertising, bud tenders, none of that can be deducted,” Green said. “So, he’s kind of beating a dead horse and is against the tide here, which there are 22 other states that have allowed this.”

Get daily cannabis business news updates. Subscribe

Ganjapreneur is made possible by our partners:

Featured Business Profiles

Create a profile View all categories