The governor of Connecticut has signed budget legislation that includes provisions to provide state-level tax relief to licensed marijuana businesses that are currently prohibited for making federal deductions under an Internal Revenue Service (IRS) code known as 280E.
Gov. Ned Lamont (D) approved the package on Monday, touting the overall tax relief and specifically highlighting how much money the cannabis industry is estimated to save with the new policy.
Giving marijuana businesses the state-level 280E workaround is expected to translate into $4.7 million in industry relief for the 2024 fiscal year, which will increase to $6.2 million in the 2025 fiscal year, the governor’s office said.
A separate, more comprehensive overview from the legislature’s Office of Fiscal Analysis shows those savings growing to $9.6 million in 2026, $11.4 million in 2027 and $13.5 million in 2028.
📺WATCH LIVE: Bill signing ceremony for the biennial state budget, which contains several tax relief measures including the largest income tax cut in Connecticut history.https://t.co/Nk8RMpZquO
— Governor Ned Lamont (@GovNedLamont) June 12, 2023
The newly enacted budget measure also contains provisions on appropriations for cannabis social equity, substance misuse prevention and regulation efforts. And it further repeals a tax credit for marijuana “angel investors”
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