The U.S. Congress is now attempting to force state-licensed marijuana businesses, regardless of whether cannabis was federally rescheduled or not, to pay punitive tax on the expenses they incur in their normal business.
H.R. On February 21, 2014, H.R. 1447 was introduced. This bill seeks to amend the Internal Revenue Code (1986) to continue to prohibit any deduction or credit for businesses that are involved in cannabis “trafficking”.
Under Section 280E of the IRC, businesses involved in Schedule I or II drugs under the Controlled Substances Act are unable to deduct their ordinary business expenses—such as payroll, rent and utilities—from their taxable incomes.
It is hoped that the Department of Justice’s (DOJ’s) proposal to reclassify marijuana as a Schedule 3 substance will provide them with the 280E relief tax to enable them to continue to function more sustainably.
Arrington, along with six other members of the Upper Chamber are working to stop this from occurring. Reps. Chuck Edwards and Gregory Murphy of N.C., Blake Moore and Vern Buchanan of Utah, Gary Palmer and Pete Sessions from Alabama, as well as Vern Buchanan (R.Fla.), are the co-sponsors.
These lawmakers, despite the fact that the DOJ’s Schedule III proposal is currently sidelined due to an interim appeal by the DOJ, are trying their best to minimize the potential impact of this proposal if a hearing before an administrative law judge results in favorable outcomes for cannabis businesses.
The text of H.R. 1447 wasn’t available as of Feb. 24—and no related bills were listed—Republican Sens. James Lankford and Pete Ricketts of the Republican Party in Nebraska, as well as James Lankford from the Republican Party of Oklahoma, both introduced bills with nearly identical titles earlier this month.
Two US senators work with prohibitionists to stop 280E relief under cannabis rescheduling
“Marijuana doesn’t make our families stronger, our streets safer, or our workplaces more productive,” Lankford said in a Feb. 7 press release. “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.”
Kevin Sabet was the president and CEO of Smart Approaches for Marijuana at the time. He took credit for the creation of this legislation. On social media, he hailed the bill as a way to make sure cannabis businesses pay the $2.3 billion in annual taxes they would otherwise not be required to pay if classified as traditional American businesses.
The Senate bill’s title is “No Deductions for Marijuana Business Act.”
SAM called attention to an important issue on Feb. 24. Washington Post ArticleArrington’s bill could be seen as a companion piece to the Senate’s version.
“Arrington introduced a bill late last week—when the House wasn’t even convened—to prohibit companies involved in the cultivation or sale of marijuana from claiming business-expensing tax deductions,” The Washington Post reported.
Cannabis Business Times has reached out to Arrington’s office in order to get a comment on the House bill and for a copy.
A 2024 Whitney Economics study found that only 27% U.S. cannabis companies are profitable.
H.R. The House Committee on Ways and Means was referred H.R.
Congress has now taken a bipartisan approach to forcing state-licensed cannabis companies to continue paying punitive business taxes, even if cannabis is federally rescheduled.
H.R. On February 21, 2014, H.R. 1447 was introduced. This bill amends the Internal Revenue Code of 1986 in order to keep the prohibition against any credit or deduction associated with businesses or trades involved in the “trafficking” of cannabis.
Under Section 280E of the IRC, businesses involved in Schedule I or II drugs under the Controlled Substances Act are unable to deduct their ordinary business expenses—such as payroll, rent and utilities—from their taxable incomes.
Many U.S. marijuana businesses hope that the Department of Justice (DOJ)’s current proposal for reclassifying cannabis as Schedule III would allow them to benefit from a 280E tax break to run more sustainably.
Arrington, along with six other members of the Upper Chamber are working to stop this from occurring. Reps. Chuck Edwards and Gregory Murphy of N.C. are also cosponsors. Blake Moore is a R.Utah representative, Gary Palmer from Alabama, Vern Buchanan R.Fla.
These lawmakers, despite the fact that the DOJ’s Schedule III proposal is currently sidelined due to an interim appeal by the DOJ, are trying their best to minimize the potential impact of this proposal if a hearing before an administrative law judge results in favorable outcomes for cannabis businesses.
The text of H.R. 1447 wasn’t available as of Feb. 24—and no related bills were listed—Republican Sens. James Lankford and Pete Ricketts of the Republican Party in Nebraska, as well as James Lankford from the Republican Party in Oklahoma, both introduced bills with nearly identical titles earlier this month.
Two US senators work with prohibitionists to stop 280E relief under cannabis rescheduling
“Marijuana doesn’t make our families stronger, our streets safer, or our workplaces more productive,” Lankford said in a Feb. 7 press release. “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.”
Kevin Sabet was the president and CEO of Smart Approaches for Marijuana at the time. He took credit for the creation of this legislation. On social media, he hailed the bill as a way to make sure cannabis businesses pay the $2.3 billion in annual taxes they would otherwise not be required to pay if classified as traditional American businesses.
The Senate version is called the “No Deductions for Marijuana Business Act”.
SAM called attention to an important issue on Feb. 24. Washington Post ArticleArrington’s bill could be seen as a companion piece to the Senate’s version.
“Arrington introduced a bill late last week—when the House wasn’t even convened—to prohibit companies involved in the cultivation or sale of marijuana from claiming business-expensing tax deductions,” The Washington Post reported.
Editor’s Note: Cannabis Business Times contacted Arrington’s Office for comment as well as a copy the House version.
A 2024 Whitney Economics study found that only 27% U.S. cannabis companies are profitable.
H.R. The House Committee on Ways and Means was referred H.R.
Cannabis Law Resources in Poland
Browse essential legal pages on cannabis sales and cultivation in Poland. These guides will help you understand the legal requirements, such as certifications, permits, and compliance.
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Polish News Registration and Interests of Cannabis Businesses
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Permissions for Cannabis Sales in Poland
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Authorization for Importing or Manufacturing Medical Products
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Permission for Manufacturing or Importing Medical Products
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Certificate of Good Manufacturing Practices (GMP)
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Registration of Medical Products in Poland