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By MJBizDaily Staff
Maine will allow legal marijuana businesses to take some tax deductions on their state returns to make up for forbidden expenses on their federal taxes.
The new tax freedom is the result of a bill – Legislative Document 1063 – recently signed into law by Maine’s Democratic governor, Janet Mills.
The legislation “makes the income tax deduction for cannabis business expenses, currently available to registered caregivers and registered dispensaries, also available to cannabis establishments and testing facilities,” according to a legislative summary.
Maine is the 17th state to offer some relief on the state level to marijuana companies chafing under the federal tax code.
Section 280 of the tax code prohibits marijuana operators from deducting traditional business expenses on their federal tax returns.
Under Maine’s new law, which was first reported by Marijuana Moment, cannabis tax money will be shifted into the state’s general fund to make up for a projected $2.5 million in reduced state revenue.
Efforts in Congress to reschedule marijuana at the federal level to provide permanent relief are unlikely to be successful until more incremental reforms can become law.
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