No Deductions for Marijuana Businesses Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1447 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 1447

To amend the Internal Revenue Code of 1986 to maintain the prohibition 
on allowing any deduction or credit associated with a trade or business 
                   involved in trafficking marijuana.


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                    IN THE HOUSE OF REPRESENTATIVES

                           February 21, 2025

Mr. Arrington (for himself, Mr. Edwards, Mr. Murphy, Mr. Buchanan, Mr. 
 Moore of Utah, Mr. Palmer, and Mr. Sessions) introduced the following 
      bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to maintain the prohibition 
on allowing any deduction or credit associated with a trade or business 
                   involved in trafficking marijuana.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``No Deductions for Marijuana 
Businesses Act''.

SEC. 2. EXPENDITURES IN CONNECTION WITH THE SALE OF MARIJUANA.

    (a) In General.--Section 280E of the Internal Revenue Code of 1986 
is amended to read as follows:

``SEC. 280E. EXPENDITURES IN CONNECTION WITH THE ILLEGAL SALE OF DRUGS.

    ``No deduction or credit shall be allowed for any amount paid or 
incurred during the taxable year in carrying on any trade or business 
if such trade or business (or the activities which comprise such trade 
or business) consists of trafficking in--
            ``(1) marijuana (as defined in section 102(16) of the 
        Controlled Substances Act (21 U.S.C. 802(16))), or
            ``(2) controlled substances (within the meaning 16 of 
        schedule I and II of the Controlled Substances 17 Act),
which is prohibited by Federal law or the law of any State in which 
such trade or business is conducted.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid or incurred after the date of the enactment of this Act 
in taxable years ending after such date.
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