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Bill > A3946


NJ A3946

NJ A3946
Decouples State tax provisions from federal prohibition on cannabis business deductions.


summary

Introduced
05/12/2022
In Committee
01/19/2023
Crossed Over
02/27/2023
Passed
02/27/2023
Dead
Signed/Enacted/Adopted
05/08/2023

Introduced Session

2022-2023 Regular Session

Bill Summary

An Act concerning business deductions incurred in carrying on a cannabis business, amending P.L.1945, c.162 and P.L.1993, c.173, and supplementing Title 54A of the New Jersey Statutes.

AI Summary

This bill decouples New Jersey's state tax provisions from the federal prohibition on cannabis business deductions. Specifically, the bill allows cannabis licensees to deduct any expenditure that would be eligible for a federal income tax deduction but is disallowed because cannabis is a controlled substance under federal law. Additionally, the bill allows cannabis licensees to deduct expenditures that would qualify as specified research or experimental expenditures under federal law. The bill also grants the director of the Division of Taxation the authority to adopt regulations necessary to implement these provisions.

Committee Categories

Budget and Finance, Government Affairs

Sponsors (7)

Last Action

Approved P.L.2023, c.50. (on 05/08/2023)

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