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.
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.
