Bill · S. 471· Senate(119-S-471)
No Deductions for Marijuana Businesses Act
- Introduced
- 2/6/2025
- Last activity
- 2/6/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- James Lankford
- Cosponsors
- - 2 - 0
- Introduced
- In Committee
What this bill would do
This bill, titled the "No Deductions for Marijuana Businesses Act," seeks to amend the Internal Revenue Code of 1986. It aims to maintain a prohibition on deductions or credits for businesses involved in trafficking marijuana. Specifically, it targets any amount paid or incurred while carrying on a trade or business consisting of trafficking marijuana or certain controlled substances. This prohibition applies if the activity is prohibited by Federal law or the law of any State where the business operates. The changes would apply to amounts incurred after the act's enactment for specific taxable years.
Yes
Does this raise the taxes companies pay?+5
The bill maintains a prohibition on deductions and credits for businesses involved in trafficking marijuana or certain controlled substances.
The opposite
Would business owners be better off under this?-5
The bill increases the tax burden on owners of marijuana-related businesses by denying them the ability to deduct business expenses.
Does this make it easier to run a small business?-5
The bill prevents businesses involved in the marijuana trade from claiming essential tax deductions or credits.
Would people in cities be better off under this?-2
The bill may negatively impact businesses that operate in urban areas where marijuana may be legal at the state level.
Who it would affect, and how
Potential Positive Impacts for People
- Maintenance of current tax prohibitions: The bill ensures that no deduction or credit is allowed for businesses involved in trafficking marijuana or specific controlled substances under the Controlled Substances Act (Section 2).
Potential Negative Impacts for People
- Financial burden on marijuana-related businesses: Businesses involved in the trade of marijuana or specific controlled substances will be unable to claim deductions or credits for amounts paid or incurred during the taxable year (Section 2).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Business Owners-5Good For Urban Residents-2
- Economy And Finance
- Increases Corporate Taxes+5Improves Small Business Support-5
- 2/10/2026
- 1 Cosponsor added.
- 2/6/2025
- Read twice and referred to the Committee on Finance.
- 1 Cosponsor added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Ted BuddRepublican · North Carolina
Pete RickettsRepublican · Nebraska