A leading marijuana industry association has released a report calling on Congress to treat cannabis businesses like other lawful industries by allowing them to take federal tax deductions—and also to apply that policy retroactively to provide relief for past payments.
The report from the National Cannabis Industry Association (NCIA) and a coalition of stakeholders states that "no industry understands the pain of taxes as acutely as the state-regulated cannabis industry which currently pays draconian tax rates as a result of the unforeseen consequences of" an Internal Revenue Service (IRS) code known as 280E.
That code precludes even state-licensed marijuana businesses from taking federal deductions for their expenses because cannabis remains a Schedule I drug under the Controlled Substances Act (CSA).
"This provision is a punitive poison pill that threatens every business in these state-regulated markets, but poses a particular threat to small businesses that have responded to the will of voters," the report says. "Picture the medical dispensary serving veterans with an alternative to deadly opioids or providing comfort to cancer patients in your community: those businesses cannot survive without action to repeal §280E and, crucially, retroactive relief."
Read more at Marijuana Moment
