New York City cannabis operators will now be allowed to deduct business expenses from local taxes, under a bill Gov. Kathy Hochul (D) signed Friday.
The legislation, S7508, allows businesses authorized to engage in the production, distribution, and sale of adult-use marijuana products or medical cannabis to deduct their business expenses when computing taxable income under the city’s unincorporated business tax, the general corporation tax, and the business corporation tax, which is prohibited at the federal level by section 280E of the Internal Revenue Code.
The section 280E rule forbids businesses from deducting ordinary business expenses from gross income …
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