HR 1985
112th CONGRESS
1st Session
H. R. 1985
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.
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.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Small Business Tax Equity Act of 2011'.
SEC. 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.
END
