Deductions & Credits for Marijuana Businesses

Small businesses in the Marijuana industry may soon have something to celebrate.

There is a bill making its way through Congress that will enable businesses selling marijuana to get tax deductions and credits.

H.R. 1810 will amend 26 USC 280E and exempt businesses in the marijuana industry from the classification as illegal drugs which is prohibited by Federal law or the law of any State in which such trade or business is conducted.  Thereby allowing them to claim deductions and credits.

Sources:
H.R. 1810 Small Business Tax Equity Act of 2017
26 USC 280E: Expenditures in connection with the illegal sale of drugs

By Wendy Stewart