Bill Details
HR.1447 - 119th Congress
Status
Latest action
2025-02-21 - Referred to the House Committee on Ways and Means.
Introduced Date
2025-02-21
Policy Area
Taxation
Committees
View committees (1)
Cosponsors
View cosponsors (12)
- Rep. Edwards, Chuck [R-North Carolina-11]
- Rep. Murphy, Gregory F. [R-North Carolina-3]
- Rep. Buchanan, Vern [R-Florida-16]
- Rep. Moore, Blake D. [R-Utah-1]
- Rep. Palmer, Gary J. [R-Alabama-6]
- Rep. Sessions, Pete [R-Texas-17]
- Rep. Harris, Andy [R-Maryland-1]
- Rep. Smith, Adrian [R-Nebraska-3]
- Rep. Clyde, Andrew S. [R-Georgia-9]
- Rep. Moran, Nathaniel [R-Texas-1]
- Rep. Lawler, Michael [R-New York-17]
- Rep. Gosar, Paul A. [R-Arizona-9]
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AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would keep in place a tax rule that stops businesses involved in marijuana trafficking from getting certain federal tax breaks. In simple terms, if a business is selling marijuana in a way that is covered by this rule, it would not be allowed to deduct related expenses or claim tax credits for those activities. The bill also makes clear that the same no-deduction rule applies to businesses trafficking in controlled substances that are illegal under federal law or under the law of any state where the business operates.
- It updates the tax code rule on business expenses linked to illegal drug sales.
- No deduction or credit would be allowed for money spent or earned while running a business that traffics marijuana.
- The rule would also apply to trafficking in other controlled substances that are illegal under federal law or state law.
- The change would take effect after the bill becomes law and would apply to amounts paid or incurred in tax years ending after that date.
Official Summaries
No summaries available
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1447 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1447
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 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.
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 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.
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