S471Referred to Committee

No Deductions for Marijuana Businesses Act

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Introduced
In Committee
3
Passed One Chamber
4
Passed Both
5
Signed into Law
119th
Congress
2025-02-06
Introduced
2
Cosponsors
S
ⓘ
Type

Sponsor

James Lankford
James Lankford
Republican · OK · Senator
Votes with party: 34.4% (323 recorded votes)

Full profile: /officials/L000575

Source: Congress.gov · FEC

Cosponsors (2)

Members who have signed on to support this bill since introduction. Source: Congress.gov.

Latest Action

The most recent step in the bill's legislative path. Committee Activity below shows referrals and reports; the full action-by-action history including floor proceedings lives at Congress.gov →

Read twice and referred to the Committee on Finance.

2025-02-06

Source: Congress.gov

Plain-English Summary

This bill would prevent marijuana businesses from claiming standard tax deductions and credits that other legal businesses can use, effectively increasing their tax burden. Currently, federal tax law already restricts some deductions for marijuana companies due to the drug's illegal status under federal law, but this bill would go further by eliminating additional deductions these businesses might otherwise claim. The change would primarily affect marijuana retailers, growers, and distributors operating in states where the drug is legal.

AI-assisted summary generated from the official bill metadata (title, subjects, actions) sourced from Congress.gov. Cached and reviewed. Always verify against the official text linked below.

Subjects

Taxation

Full Bill Text

Verbatim text published on Congress.gov via GovInfo. Use Cmd+F / Ctrl+F to search within this excerpt.

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [S. 471 Introduced in Senate (IS)] <DOC> 119th CONGRESS 1st Session S. 471 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. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES February 6 (legislative day, February 5), 2025 Mr. Lankford (for himself and Mr. Ricketts) introduced the following bill; which was read twice and referred to the Committee on Finance _______________________________________________________________________ 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. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``No Deductions for Marijuana Businesses Act''. SEC. 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: ``SEC. 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 of schedule I and II of the Controlled Substances 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. <all>
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