Assembly Bill 5323 permits certain tax deductions related to the sale, production, or distribution of cannabis products in an effort to offset increased tax burdens placed upon dispensaries by Section 280E of the federal tax code.
If passed, this bill would allow a deduction in an amount equal to any expenditure that is eligible to be claimed as a federal income tax deduction but is disallowed because cannabis is a controlled substance under federal law, and income shall be determined without regard to section 280E of the Internal Revenue Code for cannabis licensees. Tax deductions would also be allowed for research and experimental expenditures.
New Jersey: Legislation to Permit Tax Deductions for Cannabis Businesses
