| 1 | 1 | | II |
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| 2 | 2 | | 119THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION S. 471 |
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| 5 | 5 | | To amend the Internal Revenue Code of 1986 to maintain the prohibition |
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| 6 | 6 | | on allowing any deduction or credit associated with a trade or business |
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| 7 | 7 | | involved in trafficking marijuana. |
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| 8 | 8 | | IN THE SENATE OF THE UNITED STATES |
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| 9 | 9 | | FEBRUARY6 (legislative day, FEBRUARY5), 2025 |
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| 10 | 10 | | Mr. L |
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| 11 | 11 | | ANKFORD(for himself and Mr. RICKETTS) introduced the following bill; |
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| 12 | 12 | | which was read twice and referred to the Committee on Finance |
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| 13 | 13 | | A BILL |
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| 14 | 14 | | To amend the Internal Revenue Code of 1986 to maintain |
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| 15 | 15 | | the prohibition on allowing any deduction or credit asso- |
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| 16 | 16 | | ciated with a trade or business involved in trafficking |
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| 17 | 17 | | marijuana. |
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| 18 | 18 | | Be it enacted by the Senate and House of Representa-1 |
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| 19 | 19 | | tives of the United States of America in Congress assembled, 2 |
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| 20 | 20 | | SECTION 1. SHORT TITLE. 3 |
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| 21 | 21 | | This Act may be cited as the ‘‘No Deductions for 4 |
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| 22 | 22 | | Marijuana Businesses Act’’. 5 |
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| 23 | 23 | | VerDate Sep 11 2014 00:32 Mar 07, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S471.IS S471 |
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| 24 | 24 | | ssavage on LAPJG3WLY3PROD with BILLS 2 |
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| 25 | 25 | | •S 471 IS |
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| 26 | 26 | | SEC. 2. EXPENDITURES IN CONNECTION WITH THE SALE 1 |
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| 27 | 27 | | OF MARIJUANA. 2 |
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| 28 | 28 | | (a) I |
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| 29 | 29 | | NGENERAL.—Section 280E of the Internal Rev-3 |
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| 30 | 30 | | enue Code of 1986 is amended to read as follows: 4 |
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| 31 | 31 | | ‘‘SEC. 280E. EXPENDITURES IN CONNECTION WITH THE IL-5 |
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| 32 | 32 | | LEGAL SALE OF DRUGS. 6 |
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| 33 | 33 | | ‘‘No deduction or credit shall be allowed for any 7 |
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| 34 | 34 | | amount paid or incurred during the taxable year in car-8 |
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| 35 | 35 | | rying on any trade or business if such trade or business 9 |
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| 36 | 36 | | (or the activities which comprise such trade or business) 10 |
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| 37 | 37 | | consists of trafficking in— 11 |
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| 38 | 38 | | ‘‘(1) marijuana (as defined in section 102(16) 12 |
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| 39 | 39 | | of the Controlled Substances Act (21 U.S.C. 13 |
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| 40 | 40 | | 802(16))), or 14 |
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| 41 | 41 | | ‘‘(2) controlled substances (within the meaning 15 |
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| 42 | 42 | | of schedule I and II of the Controlled Substances 16 |
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| 43 | 43 | | Act), 17 |
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| 44 | 44 | | which is prohibited by Federal law or the law of any State 18 |
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| 45 | 45 | | in which such trade or business is conducted.’’. 19 |
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| 46 | 46 | | (b) E |
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| 47 | 47 | | FFECTIVEDATE.—The amendment made by 20 |
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| 48 | 48 | | this section shall apply to amounts paid or incurred after 21 |
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| 49 | 49 | | the date of the enactment of this Act in taxable years end-22 |
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| 50 | 50 | | ing after such date. 23 |
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| 51 | 51 | | Æ |
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| 52 | 52 | | VerDate Sep 11 2014 00:32 Mar 07, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\S471.IS S471 |
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| 53 | 53 | | ssavage on LAPJG3WLY3PROD with BILLS |
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