under Internal Revenue Service (IRS) Code 280E keeps the marijuana industry blocked from receiving federal deductions. This exempts entities that illegally sell Schedule I or II drugs from major tax deductions on federal filings.
However, as a partial remedy, new jersey legislature By a vote of 59 to 8, we passed a bill (final form) that would allow licensed cannabis businesses to deduct certain expenses from their state tax returns. Governor Phil Murphy (D) Consider in office.
What does the “partial relief” law include?
For purposes of New Jersey tax law, the total revenue of a licensed cannabis company shall be determined without regard to Section 280E of the law. [federal] Internal Revenue Code’ read law. and continued, “It shall apply to taxable years beginning on or after January 1 after enactment.”
organizer Congressman Annette Quillano (Democrat)as first reported by The Marijuana Moment, the bill “was approved by the Senate in a 32-3 vote after debate and debate on the floor”.
Last year, the bill was amended by Congress’ Oversight, Reform, and Federal Relations Committee. At that time, its members agreed to remove a previous provision that only qualified cannabis license holders with gross revenues of less than $15 million for state tax credits.
according to Legal Affairs Bureau (OLS), “Providing access to these deductions and credits could also help generate more economic activity by cannabis businesses,” hence “state and local governments taxing cannabis businesses.” may indirectly realize an indeterminate additional annual income.”
Benzinga’s Cannabis Capital Conference Is Back
The Benzinga Cannabis Capital Conference, the world’s most successful cannabis business event, returns to Miami for its 16th edition. This is where funding is raised, M&A is initiated, and companies meet investors and key partners. Join us April 11-12 at the Fontainebleau Miami Beach Hotel in Florida. Do not miss it. Secure your ticket now. Prices go up quickly.
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