No Deductions for Marijuana Businesses Act

119 HR 1447 IH: No Deductions for Marijuana Businesses Act U.S. House of Representatives 2025-02-21 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I 119th CONGRESS 1st Session H. R. 1447 IN THE HOUSE OF REPRESENTATIVES February 21, 2025 Mr. Arrington (for himself, Mr. Edwards , Mr. Murphy , Mr. Buchanan , Mr. Moore of Utah , Mr. Palmer , and Mr. Sessions ) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to maintain the prohibition on allowing any deduction or credit associated with a trade or business involved in trafficking marijuana. 1. Short title This Act may be cited as the No Deductions for Marijuana Businesses Act . 2. Expenditures in connection with the sale of marijuana (a) In general Section 280E of the Internal Revenue Code of 1986 is amended to read as follows: 280E. Expenditures in connection with the illegal sale of drugs 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— (1) marijuana (as defined in section 102(16) of the Controlled Substances Act ( 21 U.S.C. 802(16) )), or (2) controlled substances (within the meaning 16 of schedule I and II of the Controlled Substances 17 Act), which is prohibited by Federal law or the law of any State in which such trade or business is conducted. . (b) Effective date The amendment made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act in taxable years ending after such date.