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H.R. 1985 (112th): Small Business Tax Equity Act of 2011

The text of the bill below is as of May 25, 2011 (Introduced).


I

112th CONGRESS

1st Session

H. R. 1985

IN THE HOUSE OF REPRESENTATIVES

May 25, 2011

(for himself, Mr. Rohrabacher, Mr. Polis, Mr. Paul, and Mr. Frank of Massachusetts) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to allow a deduction for expenses in connection with the trade or business of selling marijuana intended for patients for medical purposes pursuant to State law.

1.

Short title

This Act may be cited as the Small Business Tax Equity Act of 2011.

2.

Deduction allowed for expenses in connection with sales of marijuana

(a)

In general

Section 280E of the Internal Revenue Code of 1986 is amended—

(1)

by striking No deduction and inserting (a) In general.—No deduction, and

(2)

by adding at the end the following new subsection:

(b)

Exception

Subsection (a) shall not apply to amounts paid or incurred in connection with the portion of the trade or business consisting of sales of marihuana (as defined by section 102(16) of the Controlled Substances Act) intended for patients for medical purposes pursuant to the law of a State.

.

(b)

Effective date

The amendments made by subsection (a) shall apply to amounts paid or incurred after the later of—

(1)

the date of the enactment of this Act, or

(2)

the date on which the State law referred to in section 280E(b) of the Internal Revenue Code of 1986 (as added by subsection (a)) is first effective.