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H.R. 1447119th CongressIn committeeLatest action Feb 21, 2025Decoded by AI · checked against the record
Official title: No Deductions for Marijuana Businesses Act
Introduced:
Read the official bill on Congress.govThe plain-language version leads. The official text is always the reference.
HR 1447 would rewrite tax law to keep marijuana businesses blocked from standard deductions even if drug scheduling changes.
40-second read · 4 questions answered below
This bill rewrites federal tax code section 280E to explicitly state that marijuana businesses cannot deduct normal business expenses like rent, wages, and utilities, even if marijuana's drug classification changes. It closes a legal question about whether state-legal marijuana businesses could escape this deduction ban through reclassification.
Marijuana growers, processors, and retailers operating legally under state medical or recreational laws are affected. Businesses in states where marijuana remains illegal are not relevant here since it targets state-legal operations.
Without deductions, these businesses would generally face higher effective federal taxes, since they'd be taxed on revenue rather than profit after expenses. This could affect the profitability, pricing, growth, or investment potential of the state-legal marijuana industry.
AI-drafted summary. Verify it against the official text before you act on it. Read the official bill on Congress.gov
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the President.
Latest action: — Referred to the House Committee on Ways and Means.