Internal Revenue Service Code 280E

Section 280e of the Internal Revenue Code has emerged as an unexpected catalyst, potentially injecting a staggering $700 million boost into cash flow for major cannabis companies. The cannabis industry has faced numerous challenges, including falling prices, excessive debt and stagnant sales...

Under the Internal Revenue Service (IRS) code 280E, the marijuana industry remains blocked from taking federal deductions, which precludes entities that illegally sell Schedule I or II drugs from key tax deductions in their federal filings. However, as partial relief, the New Jersey Assembly in a...