New Jersey Lawmakers Send Governor Bill To Let Marijuana Businesses Claim State Tax Deductions As Partial 280E Workaround
New Jersey lawmakers sent the governor legislation on Monday that would allow licensed marijuana businesses to deduct certain expenses on their state tax returns, a partial remedy as the industry continues to be blocked from making federal deductions under Internal Revenue Service (IRS) code known as 280E. The measure was approved by the Senate in a vote of 32-3 following no debate or discussion on the floor. The legislation previously cleared the Assembly in October and advanced through the Senate Budget and Appropriations Committee last month in a meeting at which senators took up companion measures from their chamber and from the Assembly, making them identical. The legislation was approved later on Monday in its final form by the Assembly in a 59-8 vote and now heads to Gov. Phil Murphy (D) to potentially be signed into law. The version from Assemblymember Annette Quijano (D) was previously amended in committee in that body, with members agreeing to remove an earlier provision that would’ve made it so only cannabis licensees with gross receipts less than $15 million would be eligible for state tax deductions. The companion measure from Sen. Troy Singleton (D) was substituted by the Assembly bill on the Senate floor on Monday. While many state tax policies simply mirror federal law, the legislation says that, for the purposes of the New Jersey’s tax code, a licensed cannabis business’s gross income “shall be determined without regard to section 280E of the [federal] Internal Revenue Code.” When it comes to federal tax policy, those businesses would still be subject to the IRS 280E code, which precludes entities that illegally sell Schedule I or II drugs from making key tax deductions in their federal filings. But if the New Jersey proposal is signed into law, the licensed cannabis industry could at least see…
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Source : New Jersey Lawmakers Send Governor Bill To Let Marijuana Businesses Claim State Tax Deductions As Partial 280E Workaround
reposted by Cannabis News World
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