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U.S. Code/Title 26/§ 280E

Title 26

26

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26 U.S.C. § 280E.Chapter 1

§ 280E

Expenditures in connection with the illegal sale of drugs

Title 26
1 min read
Subchapter: Computation of Taxable Income

Need the full chapter outline? Open Chapter 1 to browse every section without loading the entire chapter explorer on this page.

Back to Chapter 1Previous: § 280CNext: § 280F

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 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.

Related Legislation

(3 bills)

Bills that would modify or reference this section of law.

HR-1447

No Deductions for Marijuana Businesses Act

Jodey Cook Arrington

Texas representative

  1. house
  2. senate
  3. president
2/21/2025
HR-2934

STATES 2.0 Act

David Joyce

Ohio representative

  1. house
  2. senate
  3. president
4/17/2025
S-471

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.

James Lankford

Oklahoma senator

  1. senate
  2. house
  3. president
2/6/2025
§ 280C

Release: pl-119-111 (2026-09-18)

§ 280F

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