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.
Title 26
26
26 U.S.C. § 280E.Chapter 1
§ 280E
Expenditures in connection with the illegal sale of drugs
Title 26
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Subchapter: Computation of Taxable Income
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Related Legislation
(3 bills)Bills that would modify or reference this section of law.
No Deductions for Marijuana Businesses Act
Jodey Cook Arrington
Texas representative
- house
- senate
- president
2/21/2025
4/17/2025
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
- senate
- house
- president
2/6/2025