Republican Senators James Lankford (Oklahoma) and Pete Ricketts (Nebraska) have introduced a bill that seeks to permanently enforce the tax penalties imposed on cannabis businesses under Section 280E of the Internal Revenue Code. The legislation, titled the “No Deductions for Marijuana Businesses Act,” was filed on February 7, 2025, and aims to ensure that marijuana operators remain unable to deduct standard business expenses, even if marijuana is rescheduled under federal law.
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