The same rule, everywhere we track it. Click a jurisdiction for the full picture and official sources.
| Jurisdiction | Status | Rule | |
|---|---|---|---|
| United States (federal) | Illegal | IRS 280E applies Because cannabis is a Schedule I/II substance, IRC Section 280E bars state-licensed cannabis businesses from deducting ordinary business expenses on federal taxes, producing very high effective tax rates. If federal rescheduling to Schedule III is finalized, 280E would no longer apply. State and local cannabis excise taxes apply on top. |
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