Bill Details
S.471 - 119th Congress
Status
Latest action
2025-02-06 - Read twice and referred to the Committee on Finance.
Introduced Date
2025-02-06
Policy Area
Taxation
Committees
View committees (1)
Sponsors
Cosponsors
View cosponsors (2)
8
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0
AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would update federal tax law so businesses that traffic marijuana cannot claim tax deductions or credits for the money they spend running that business. It keeps in place the rule that bars tax breaks for businesses involved in illegal drug trafficking, and it makes the law clear that marijuana is included. In short, the bill says marijuana-related trafficking businesses should not get normal tax benefits that other businesses may claim.
- It rewrites part of the tax code to say that no deduction or credit is allowed for a business that is trafficking marijuana.
- It also covers other controlled substances that are illegal under federal law or under the law of the state where the business operates.
- The new rule would apply to amounts paid or incurred after the law is enacted, for 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]
[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.
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