H.R. 1447In committeeJobs & the economy
Bill would keep marijuana businesses barred from federal tax deductions
Data as of July 13, 2026
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
Decoded
What does this do?
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.
Who does it affect?
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.
Why does it matter?
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.
Where does it stand?
- Introduced
- House committee — You are here
- House vote
- Senate
- President's desk
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the President.
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Official title
No Deductions for Marijuana Businesses Act
- Introduced:
- February 21, 2025
- Latest action:
- February 21, 2025
Referred to the House Committee on Ways and Means.
Read the official bill on Congress.govMake the call
Three steps: where you stand, your script, the call.