President Joe Biden just dropped the federal budget for 2024. The White House boldly claims that the tax plan will reduce the deficit by $3 trillion over the next 10 years. But several parts of the budget’s tax reforms are likely to significantly (and adversely) impact the cannabis industry. Today, I’ll analyze a few key provisions of the tax plan and why they will be significant.
First off, we can’t talk about cannabis industry tax issues without bringing up section 280E of the Internal Revenue Code, which states, “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.” We’ve written about 280E many times, but most recently here, where my colleague, Hilary Bricken, discussed some potential for 280E reform in 2o23. In pains us to state, however, that there was nothing of the sort
Read full article on HarrisBricken
