7 US House Republicans File Bill to Prevent 280E Tax Relief for Cannabis Businesses
If you were hoping to see 280E tax relief in 2025, you might want to adjust your expectations.
Congressman Jodey Arrington, R-Texas, who chairs the House Budget Committee, and six of his fellow representatives in the U.S. House introduced legislation, H.R. 1447, on Feb. 21. The bill aims to amend the Internal Revenue Code (IRC) of 1986 to maintain the prohibition on any deduction or credit associated with a trade or businesses involved in “trafficking” cannabis.
Under Section 280E of the IRC, businesses involved in Schedule I or II drugs under the Controlled Substances Act are unable to deduct their ordinary business expenses—such as payroll, rent and utilities—from their taxable incomes.
The bicameral effort to make Section 280E a more permanent hindrance to cannabis businesses comes at a time when just 27% of U.S. cannabis businesses are profitable, according to a 2024 Whitney Economics report.
