Seven Republican representatives have introduced a bill to block businesses from claiming tax marijuana deductions for expenses, even if the substance is federally rescheduled.
Republican Rep. Jodey C. Arrington, Chairman of the House Budget Committee, introduced a bill last week—co-sponsored by six colleagues—to amend the Internal Revenue Code of 1986 and uphold the ban on tax deductions or credits for businesses involved in marijuana trafficking.
The bill, though its text is unavailable, aims to prevent marijuana businesses from claiming federal tax deductions under IRS Code 280E, even if the substance is rescheduled.
The measure would preserve existing tax prohibitions against the marijuana business, which has been monitoring the federal rescheduling process of marijuana from Schedule I to Schedule III under the Controlled Substances Act (CSA), largely due to its potential impact on 280E tax limitations.