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No Deductions for Marijuana Businesses Act
To amend the Internal Revenue Code of 1986 to maintain the prohibition on allowing any deduction or credit associated with a trade or business involved in trafficking marijuana.
Summary
This bill amends federal tax law to maintain the prohibition on tax deductions for businesses involved in marijuana trafficking. It clarifies that no business deductions or tax credits are allowed for expenses related to marijuana sales, regardless of whether marijuana is legal under state law, as long as it violates federal law. The same prohibition applies to businesses trafficking in other Schedule I and II controlled substances under federal law. The amendments apply to expenses paid or incurred after the bill's enactment.
AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.
Sponsor (1)
- Sen. Lankford, James [R-OK] (R-OK)
2 cosponsors
- Sen. Budd, Ted [R-NC] (R-NC)
- Sen. Ricketts, Pete [R-NE] (R-NE)
Actions (2)
- Feb 6, 2025 Read twice and referred to the Committee on Finance. · senate
- Feb 6, 2025 Introduced in Senate
Similar bills (6)
Bills with similar text or summary — includes reintroductions across Congresses. Ranked by semantic similarity of the bill text (computed locally); a neutral discovery aid, not a claim the bills are duplicates.
Full text
IN THE SENATE OF THE UNITED STATES
February 6 (legislative day, February 5), 2025
Mr. Lankford (for himself and Mr. Ricketts) introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to maintain the prohibition on allowing any deduction or credit associated with a trade or business involved in trafficking marijuana.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “No Deductions for Marijuana Businesses Act”.
SEC. 2. EXPENDITURES IN CONNECTION WITH THE SALE OF MARIJUANA.
(a) In General.—Section 280E of the Internal Revenue Code of 1986 is amended to read as follows:
“SEC. 280E. EXPENDITURES IN CONNECTION WITH THE ILLEGAL SALE OF DRUGS.
“No deduction or credit shall be allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in—
“(1) marijuana (as defined in section 102(16) of the Controlled Substances Act (21 U.S.C. 802(16))), or
“(2) controlled substances (within the meaning of schedule I and II of the Controlled Substances Act), which is prohibited by Federal law or the law of any State in which such trade or business is conducted.”.
(b) Effective Date.—The amendment made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act in taxable years ending after such date. <all>
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