Benzinga reports
New York State lawmakers finally wrapped up the state’s $220 billion budget and it looks like cannabis companies have reason to be pleased, maybe even celebrate.
As it stands, cannabis companies not only have no access to the country’s banking system they are also not permitted to claim certain federal tax deductions like the rest of us. This tax ruling, established in the Internal Revenue Code as 280E section, maintains that state-legal marijuana businesses do not qualify for most common business deductions and credits.
However, the budget proposal sent to Gov. Kathy Hochul’s desk includes provisions that New York State’s cannabis companies will be allowed to claim tax deductions on their businesses and credits at the state level despite marijuana’s antiquated and erroneous classification as a Schedule I drug.
