The New York legislature has officially sent legislation to the governor that would provide tax relief to New York City cannabis businesses that are currently blocked from making federal deductions under an Internal Revenue Service (IRS) code known as 280E.
About five months after the Senate and Assembly approved the proposal, both chambers transmitted their identical bills to Gov. Kathy Hochul (D) on Monday. While Hochul signed a budget bill last year that included provisions that allow state-level cannabis business tax deductions—a partial remedy to the ongoing federal issue—New York City has its own tax laws that weren’t affected by that change. The new measure is meant to fill that policy gap.
“This bill would allow a deduction for business expenses incurred by taxpayers authorized by the Cannabis Law to engage in the sale, distribution, or production of adult-use cannabis products or medical cannabis, for purposes of the unincorporated business tax (UBT), the general corporation tax (GCT), and the corporate tax of 2015, commonly referred to as the business corporation tax (BCT),” a summary says.
A section of the city’s tax code would be amended to add sections allowing the deductions “in an amount equal to any federal deduction disallowed by section 280E of the internal revenue code.”
Read more at marijuanamoment.net