Senate Committee Passes NJCPA-Drafted Bill to End Unfair Taxation of Cannabis Companies
Legislation written by the NJCPA Cannabis Interest Group (A3946/S340) that would end New Jersey's unfair tax treatment of cannabis businesses was passed by the Senate Budget Committee on Jan. 19, 2023. It already passed the full Assembly on Oct. 27, 2022. The bill still needs to be passed by the full Senate and signed by the Governor.
Alex Krasnomowitz, CPA, (center) testifying before the Senate Budget Committee on Jan. 19, 2023, in support of S340
Internal Revenue Code (IRC) Section 280E forbids companies engaged in illegal drug activities from deducting business expenses. New Jersey piggybacks on this provision, in effect treating cannabis companies as if they are engaged in illegal drug trafficking. A3946, as amended in committee, will decouple cannabis businesses from 280E. In addition to the NJCPA, the bill was supported by all the other major business groups.
View the NJCPA's Jan. 19 testimony to the Senate Budget Committee