Under the Internal Revenue Service (IRS) code 280E, the marijuana industry remains blocked from taking federal deductions, which precludes entities that illegally sell Schedule I or II drugs from key tax deductions in their federal filings.
However, as partial relief, the New Jersey Assembly passed a bill that would allow licensed cannabis businesses to deduct certain expenses on their state tax returns. The legislation, introduced by Assemblymember Annette Quijano (D) passed the House in a 60-6 vote.
