New York lawmakers on Saturday sent a budget proposal to the governor’s desk that includes provisions to let marijuana businesses take state tax deductions that are available to other industries despite an ongoing federal ban on cannabis. Senate and Assembly leaders had included a form of the proposal in earlier versions of their respective budget measures last month. Negotiations with Gov. Kathy Hochul (D) over unrelated components caused a delay and budget deadline extension, but the cannabis measure was included in the final version passed by the Assembly and Senate. The proposals would carve out an exemption, making it so marijuana companies would be allowed to make tax deductions for business expenses and claim credits at the state level that they’re currently barred from utilizing on their federal returns under prohibition. Medical and adult-use cannabis companies across the U.S. are precluded from making certain federal tax deductions under an Internal Revenue Code section known as 280E. By decoupling the state tax code from the federal law in this respect, New York marijuana businesses would see significant tax savings.
Kyle Jaeger, Marijuana Moment, 04/10/2022 08:31:00