Pennsylvania Lawmakers Approve Medical Marijuana 280E Tax Relief Amendment In Committee

Pennsylvania Lawmakers Approve Medical Marijuana 280E Tax Relief Amendment In Committee
MJ moment

A panel of Pennsylvania lawmakers approved an amendment on Tuesday that seeks to make it so medical marijuana businesses can receive state tax deductions for expenses they’re currently prohibited from claiming under federal tax law. The amendment from Rep. Aaron Kaufer (R) was attached to a broader tax code reform bill that advanced through the House Finance Committee. In Pennsylvania, the state receives federal corporate tax returns, which do not allow for marijuana business expense deductions. What the amendment would accomplish is to allow medical cannabis companies to add deductions after-the-fact for state tax purposes. The legislation would only apply to medical marijuana businesses’ state taxes, meaning those firms would still have to grapple with an Internal Revenue Service (IRS) code known as 280E that precludes businesses that work with federally controlled substances from making key tax deductions in their federal filings. But under the amended legislation, they could see some relief from the state. “This just allows parity within the law,” Kaufer said ahead of the vote. Rep. Kevin Boyle (D) said that “currently, without this amendment, the medical marijuana industry is, we believe, unfairly targeted. So this amendment to the bill is a serious upgrade to the overall legislation.” The Pennsylvania Senate separately passed standalone legislation to make a state-level fix clarifying that medical marijuana businesses may access Pennsylvania’s banking system in April, and a companion House version was subsequently filed but has not yet moved through committee. The 280E tax fix was included in an earlier version of the banking bill, but it was taken out in order to be handled as a separate issue. Outside of Pennsylvania, New York’s governor recently signed a budget proposal that similarly includes provisions to let marijuana businesses take state tax deductions that are available to other industries despite an ongoing…

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Source : Pennsylvania Lawmakers Approve Medical Marijuana 280E Tax Relief Amendment In Committee

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