In a move that grants New York-based cannabis operators an advantage over similar companies in other states, New York lawmakers have approved language in a bill that allows the operators to deduct ordinary business expenses on their state taxes.
The agreement between lawmakers and Gov. Kathy Hochul (D) gives the state’s cannabis businesses the ability to operate like companies in other industries, which do not face the same barriers as those in the cannabis industry. Based on the state’s Fiscal Year 2023 budget, the tax break is set to apply to taxable years beginning on and after Jan. 1, 2022.
Cannabis’ status as a federally illegal Schedule I substance prevents cannabis-related businesses from deducting business expenses on their federal returns under Section 280E of the Internal Revenue Code. According to MarketWatch, lawmakers claimed that the Section 280E exemption “has impacted legal cannabis companies, including small and medium sized businesses.”
Apply For Your Medical Marijuana Card Today
Veriheal has satisfied hundreds of thousands of patients nationwide
Get approved or your money back
Appointments available on-demand
Customer support available 24/7
Those in support of the change hope to see the jurisdiction’s cannabis companies experience a much-needed financial boost after many years of dealing with bureaucratic red tape that has made it difficult to profit from the industry.
Some other states have also begun exploring ways to assist cannabis companies in the midst of legal gray areas. For example, California lawmakers introduced a bill in March that would allow cannabis operators to receive a tax credit in the amount equal to certain business expenses, including employment compensation, safety training, and more.
By aiding legal cannabis businesses, proponents of this kind of legislation believe the illicit market will begin to deteriorate.
Gary Miller is an Actor, Writer, Filmmaker, Comedian, and Entrepreneur. Born and raised in Denver, CO, Gary has joined the Veriheal team as a Media Curator.
Let me tell you about these tax deductions….the US canabis industry is on the Titanic. Regulations and the myriad of taxes from special districts, city, county, state and soon federal will crush the business. Taxes on weed are only going up. Tax codes are a joke. I live in Mexico, and let me list why they are going to crush the US market.
First of all there is NO personal income tax. Well water is free. People here make 20$ a day not $20 an hour. There is no unemployment insurance. There is no property insurance. There are no slip and fall lawyers. Taxes here are reasonable and way less than the US. You can grow weed all year. Land is cheaper. I own land in Mexico and my taxes are 150 dollars a year. What are property costs in california? Overpriced America is just that. America cannot compete in many areas of commerce and weed is one.
Suddenly, the world of magic mushrooms is almost as complicated as that of learning about cannabis. Shrooms or “magic” mushrooms have gained traction as a hallucinogenic therapeutic application for several different mental health circumstances such as depression and migraines—particularly when microdosing. It’s not just liberty caps anymore, folks. There are many different varieties and types…
Edibles are arguably one of the best means of recreational cannabis consumption—you get to eat a treat AND experience a long-lasting high. But it’s easy to end up dealing with some unwanted side effects due to the variability in the onset of these THC-packed goodies, which come in the form of brownies, cookies, gummies, chocolate,…
If you’re reading this, you are either a recreational cannabis veteran who has seen a handful of cannabis smokers passing out from puffing a joint and can’t seem to figure out why. Or, you are a newbie who wants to give recreational or medical cannabis a shot, and the burning question on your mind is,…
According to a new study published by the University of New Mexico (UNM) in the prestigious journal Frontiers in Pharmacology, researchers have unveiled a significant correlation between the sensation of “feeling high” and the relief of medical symptoms among cannabis patients. This landmark study probes uncharted territories, challenging pre-existing assumptions and opening new avenues for…
A survey illustrates psychedelics’ rapid rise, Herer Brands sues Daniel Herer, and Hulkamania comes to cannabis. Let’s dive into this week’s canna-news. Psychedelic Use Reaches Record High A new national survey conducted by Monitoring The Future found that psychedelic use is at an all-time high amongst U.S. adults. Conducted in 2022, the survey included approximately…
We use our own as well as third party cookies to improve your site experience and the services we make available. You can learn more about our use of cookies in our Privacy Policy.
Content Disclamer
The statements made regarding cannabis products on this website have not been evaluated by the Food and Drug Administration (FDA). Cannabis is not an FDA-approved substance and is still illegal under federal law. The information provided on this website is intended for educational purposes only and is not intended to diagnose, treat, cure, or prevent any disease. It is not intended as medical advice and should not be considered as a substitute for advice from a healthcare professional. We strongly recommend that you consult with a physician or other qualified healthcare provider before using any cannabis products. The use of any information provided on this website is solely at your own risk.