No Deductions for Marijuana Businesses Act
- Breathe Free USA
- Dec 20, 2025
- 1 min read
Context: If marijuana is successfully rescheduled to Schedule III, Internal Revenue Code 280E, which prohibits business tax deductions for Schedule I and II substances would no longer apply to marijuana businesses, therefore allowing them to take tax deductions for normal business expenses. Those opposed to this have reported a few concerns, including:
1. Many illegal marijuana businesses, such as foreign drug cartels who have found clever ways to disguise their operations as legitimate, will be able to take advantage of massive tax breaks and therefore thrive in our country, creating an even greater national security and public safety issue.
2. Since marijuana business will be able to deduct marketing expenses, there is concern that our country will be flooded with more marijuana advertising, much of which is appealing to youth.
The “No Deductions for Marijuana Businesses Act” was introduced by Senator James Lankford (OK) on 2/6/25. If it becomes law, it would amend Internal Revenue Code Section 280E Expenditures In Connection With The Illegal Sale of Drugs to prohibit marijuana businesses from taking tax credits for business expenses.
Read more about the massive issue of illegal drug cartels operating in our country:
