Cannabis industry tax fix not included in final Senate reform bill

cannabis taxes

A repeal of the 280E section of the federal tax code for law-abiding marijuana companies was not included in the final version of the landmark tax bill that the U.S. Senate passed early Saturday, despite a last-minute amendment attempt by Colorado Republican Sen. Cory Gardner.

An amendment that would have exempted state-compliant marijuana companies from 280E “did not make it into the bill passed in the Senate,” Gardner’s press secretary, Casey Contres, wrote in an email to Marijuana Business Daily.

However, “Senator Gardner is going to continue to work with his colleagues to gain support for the legislation and get it signed into law in the future,” Contres continued. “He believes these businesses should be treated fairly.”

Under 280E, cannabis businesses are prohibited from taking standard federal tax deductions that are allowed for every other legal industry, so MJ businesses typically end up paying a 70%-90% federal tax rate.

An exemption from 280E for law-abiding cannabis businesses has been floated multiple times in both the Senate and the House of Representatives but so far has failed to gain real traction among lawmakers.

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5 comments on “Cannabis industry tax fix not included in final Senate reform bill
  1. Morgan Glenn on

    Nothing is more unfair or ridiculous than this and shows a real weakness for hypocrisy in the Republican Party. True fiscal conservatives should split from the cultural conservatives who are still waging a war on our people because of unfinished feelings from the Civil War or fantasies of imposing religious law on everyone.

  2. Angela on

    the tightly puckered right wing will require a very large crowbar to allow this to pass…so wrong for these businesses to be ostracized for selling a product that the grand ole party cannot wrap their head around.


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