REP TITUS ANNOUNCES BILL TO SUPPORT MARIJUANA BUSINESSES

May 19, 2017
Press Release

May 19, 2017

Washington, D.C. – Today Rep. Dina Titus of Nevada’s First Congressional District cosponsored the Small Business Tax Equity Act of 2017, H.R. 1810, bipartisan legislation to amend Section 280E of the Internal Revenue Code and allow legal marijuana businesses, in compliance with state laws, to utilize the federal tax deductions and credits available to all small businesses.

The federal government currently prohibits marijuana businesses from deducting legitimate expenses from their taxes and discriminates against the rights of businesses in states that have legalized recreational or medical marijuana sales.

“The tax code is outdated and out of step,” Rep. Titus said. “It is time for Congress to give legal marijuana businesses equal footing under the law. In Nevada, more than 190 marijuana businesses exist and dozens more are expected to form in the coming months. These small businesses deserve access to the same deductions in the tax code that other legal enterprises utilize.”

 

BACKGROUND

The Small Business Tax Equity Act of 2017 eliminates the unintended consequences of Section 280E of the IRC. Blocking marijuana businesses from operating like a normal industry deters new businesses from opening and forces other regulated businesses underground.