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New York Governor Hochul Signs Legislation Providing Tax Relief for NYC Marijuana Businesses, Addressing Federal Deduction Restrictions

MRBNew York Governor Hochul Signs Legislation Providing Tax Relief for NYC Marijuana Businesses, Addressing Federal Deduction Restrictions

New York Governor Kathy Hochul has signed legislation aimed at providing tax relief to marijuana businesses in New York City that face restrictions on federal deductions under IRS Code 280E. While a previous state-level cannabis business tax deduction was included in last year’s budget bill, it did not affect the city’s tax laws. The new legislation seeks to address this gap by allowing deductions for business expenses incurred by cannabis businesses for the unincorporated business tax, general corporation tax, and business corporation tax. The amendment to the city’s tax code is intended to offset federal deductions disallowed by IRS Code 280E, which prohibits certain deductions for businesses engaged in the sale, distribution, or production of cannabis. This move follows similar efforts in other states where lawmakers are pursuing tax relief for state-licensed cannabis businesses amid a lack of progress on federal marijuana reform legislation.

By FCCT Editorial Team

Disclaimer: The views expressed in this article are independent views solely of the author(s) expressed in their private capacity.

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