No Deductions for Marijuana Businesses Act
Sponsored By: Senator Lankford, James [R-OK]
Introduced
Summary
No federal tax deductions or credits for marijuana businesses. This bill would amend the tax code to bar any deduction or credit for amounts paid or incurred in carrying on a trade or business that consists of trafficking in marijuana or other controlled substances. It relies on the federal Controlled Substances Act definition of marijuana and covers substances listed on Schedules I and II. The prohibition applies as written to activities prohibited by federal law or by the laws of the state where the trade is conducted and would apply to taxable years ending after enactment.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 1 costs, 0 mixed.
Higher taxes for marijuana businesses
This bill would bar tax deductions and tax credits for businesses that traffic in marijuana. It would also bar deductions and credits for businesses trafficking in Schedule I or II controlled substances. "Marijuana" would use the federal definition in 21 U.S.C. 802(16). The rule would apply if the trafficking is prohibited by federal law or by the law of the state where the business operates. It would apply to amounts paid or incurred after the date of enactment, for taxable years ending after that date. If enacted, affected businesses would report higher taxable income and would likely pay more tax.
Sponsors & CoSponsors
Sponsor
Lankford, James [R-OK]
OK • R
Cosponsors
Sen. Ricketts, Pete [R-NE]
NE • R
Sponsored 2/6/2025
Sen. Budd, Ted [R-NC]
NC • R
Sponsored 2/10/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov