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
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.
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:
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.