NJCPA Urges NJ Legislature to Make Tax Code Change if Cannabis is Legalized in New Jersey
If adult-use cannabis is legalized in New Jersey, it is crucial that the state decouples from the federal law governing cannabis — Internal Revenue Code 280(E) — to have a viable cannabis industry. As it stands, the federal provisions in IRS Code 280(E) make it impossible for cannabis business owners to receive a tax benefit for any of their operating expenses due to cannabis’ status as a federally controlled substance. This creates an immense challenge to the cash flow of cannabis operations in the United States.