Under the Internal Revenue Service (IRS) code 280E, the marijuana industry remains blocked from taking federal deductions, which precludes entities that illegally sell Schedule I or II drugs from key tax deductions in their federal filings.
However, as partial relief, the New Jersey Assembly in a 59-8 vote passed a bill (in its final form) that would allow licensed cannabis businesses to deduct certain expenses on their state tax returns. Now, the measure heads to Gov. Phil Murphy (D)'s office for consideration.
What’s In The ‘Partial Remedy’ Legislation?
For the purposes of New Jersey’s tax code, a licensed cannabis company's gross income “shall be determined …