A U.S. district court has ruled that state-regulated cannabis companies are not eligible for tax refunds under the Employee Retention Credit (ERC) program that helped businesses continue to pay workers when companies were shut down during the COVID-19 pandemic.
That’s according to a ruling from the U.S. District Court for the Western District of Washington that determined Section 280E of the Internal Revenue Code is not limited to income tax credits, according to Marijuana Moment.
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The case – Receivership Estate of Solstice Group; Solstice Holdings C/O Turning Point Receiver v. United States of America – has been dismissed.
Section 280E prohibits businesses that traffic in Schedule 1 or 2 substances from taking standard tax deductions and credits – even if such allowances
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