Bill > S471

This bill aims to maintain and clarify existing tax restrictions on businesses involved in marijuana trafficking by amending Section 280E of the Internal Revenue Code. Specifically, the bill prohibits any tax deductions or credits for businesses that are engaged in selling marijuana or other Schedule I and II controlled substances that are illegal under federal law or state law. The prohibition applies broadly to any expenditures related to such businesses, effectively meaning that marijuana businesses cannot reduce their tax liability through standard business expense deductions. This legislation reinforces the federal government's stance that businesses trafficking in marijuana cannot receive the same tax benefits as other legal businesses, even in states where marijuana has been legalized. The amendment will apply to amounts paid or incurred after the date of the bill's enactment, in taxable years ending after that date. By maintaining this tax restriction, the bill continues to treat marijuana-related businesses differently from other legal commercial enterprises in terms of tax treatment, reflecting the ongoing federal classification of marijuana as an illegal substance.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/471/all-info