I
112th CONGRESS
1st Session
H. R. 1985
IN THE HOUSE OF REPRESENTATIVES
May 25, 2011
Mr. Stark (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.
Short title
This Act may be cited as the
Small Business Tax Equity Act of
2011
.
Deduction allowed for expenses in connection with sales of marijuana
In general
Section 280E of the Internal Revenue Code of 1986 is amended—
by striking
No deduction
and inserting (a) In
general.—No deduction
, and
by adding at the end the following new subsection:
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.
.
Effective date
The amendments made by subsection (a) shall apply to amounts paid or incurred after the later of—
the date of the enactment of this Act, or
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.
