New Jersey Assembly Approves Bill to Let Cannabis Licensees Take Business Deductions

The New Jersey Assembly passed a proposal to let licensed cannabis businesses deduct certain expenses from their state tax filings; the bill still needs to pass the Senate and be signed by the governor.

Full story after the jump.

The New Jersey Assembly has passed a bill that will allow licensed cannabis businesses to deduct certain expenses from their state tax filings, Marijuana Moment reports. The law, which still needs to pass the Senate before going to the governor, is in contrast to the federal tax code known as section 280E, which does not allow companies working with Schedule I or II narcotics to take advantage of federal tax write-offs.

Sponsored by Assemblymember Annette Quijano (D), the bill passed the lower chamber 60-6 a month after it was introduced in committee. The bill dictates that the gross income of New Jersey cannabis businesses “shall be determined without regard to section 280E of the [federal] Internal Revenue Code,” the report says.

A fiscal analysis by the New Jersey Office of Legislative Services found the change may “result in an indeterminate annual loss of revenue” to the state as cannabis businesses’ tax burdens fall, and, on the provide “access to these deductions and credits may also help generate more economic activity by cannabis businesses,” while increasing revenue for “the state and local governments that tax cannabis businesses might indirectly realize an indeterminate amount of additional annual revenue.”

New Jersey passed adult-use cannabis reforms in 2020 via a legislature-approved ballot measure. It had regulations in place for the new system by August 2021 and by April 21, 2022, began selling cannabis to adults over 21.

Get daily cannabis business news updates. Subscribe

Have an additional perspective to share? Send us a message to let us know, and if your comment is chosen by our editors it could be featured here.

Sponsor message:

End


Latest Cannabis News

View all news Get email updates

Featured Business Profiles

Create a profile View all categories

From Our Partners