PRIA Logo™
119-hr-1447119th CongressWALLET

No Deductions for Marijuana Businesses Act

Sponsored By: Representative Arrington, Jodey C. [R-TX-19]

Introduced

Summary

Bars marijuana businesses from claiming federal tax deductions and credits. This bill would amend Section 280E to say no deduction or credit is allowed for a trade or business that consists of trafficking in marijuana as defined in 21 U.S.C. 802(16). It would also bar deductions and credits for trafficking in Schedule I or II controlled substances when the activity is illegal under federal law or under the law of the state where the business operates.

Show full summary
  • State-legal cannabis businesses: Would be unable to claim federal tax deductions or credits for amounts paid or incurred in carrying on their business.
  • Businesses dealing in Schedule I or II drugs: Would likewise be barred from deductions or credits if their trafficking is illegal under federal law or under the law of the state where they operate.

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 1 costs, 0 mixed.

Higher taxes for marijuana businesses

If enacted, this bill would bar any federal tax deduction or credit for businesses whose trade consists of trafficking in marijuana or other Schedule I or II controlled substances. That ban would apply when the trafficking is illegal under federal law or under the law of the State where the business operates. The rule would apply to amounts paid or incurred after the date of enactment in taxable years ending after that date.

Sponsors & CoSponsors

Sponsor

Arrington, Jodey C. [R-TX-19]

TX • R

Cosponsors

  • Rep. Edwards, Chuck [R-NC-11]

    NC • R

    Sponsored 2/21/2025

  • Rep. Murphy, Gregory F. [R-NC-3]

    NC • R

    Sponsored 2/21/2025

  • Rep. Buchanan, Vern [R-FL-16]

    FL • R

    Sponsored 2/21/2025

  • Rep. Moore, Blake D. [R-UT-1]

    UT • R

    Sponsored 2/21/2025

  • Rep. Palmer, Gary J. [R-AL-6]

    AL • R

    Sponsored 2/21/2025

  • Rep. Sessions, Pete [R-TX-17]

    TX • R

    Sponsored 2/21/2025

  • Rep. Harris, Andy [R-MD-1]

    MD • R

    Sponsored 3/4/2025

  • Rep. Smith, Adrian [R-NE-3]

    NE • R

    Sponsored 3/21/2025

  • Rep. Clyde, Andrew S. [R-GA-9]

    GA • R

    Sponsored 3/25/2025

  • Rep. Moran, Nathaniel [R-TX-1]

    TX • R

    Sponsored 4/10/2025

  • Rep. Lawler, Michael [R-NY-17]

    NY • R

    Sponsored 2/9/2026

  • Rep. Gosar, Paul A. [R-AZ-9]

    AZ • R

    Sponsored 6/15/2026

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
Back to Legislation