The New Jersey State Senate passed a bill allowing legal cannabis companies to keep separate state tax provisions from the federal prohibition on deductions to help alleviate legal cannabis tax issues companies are facing.
Currently, legal cannabis companies cannot deduct their business expenses from their taxes, a common business practice since cannabis remains a Schedule I narcotic with no medicinal value in the eyes of the federal government. It is due to a provision under Section 280-E of the IRS Tax Code.
The New Jersey Assembly had previously passed its version. But they also had to pass a new one yesterday due to technical issues. The vote was 59 to 8, with five not voting and eight abstaining.
“The NJCBA applauds the Legislature for demonstrating leadership in furthering the normalization of the cannabis industry,” New Jersey CannaBusiness Association (NJCBA) President Ed DeVeaux said. “For too long, legitimate businesses have been discriminated against based on outdated and unjust policies. As far as cannabis policy is concerned, New Jersey continues to be the legislative and regulatory model for the nation.”
“We would especially like to thank Senators (Tory) Singleton and (Shirley) Turner and Assemblywoman (Annette) Quijano for their strong advocacy on this issue,” ED added.
The New Jersey State Senate Budget Committee passed the bill in January.
The bill can now be signed into law by Governor Phil Murphy.
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