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Connecticut lawmakers have sent a budget bill to the governor that includes provisions to provide state-level tax relief to licensed marijuana businesses that are currently prohibited for making federal deductions under an Internal Revenue Service (IRS) code known as 280E.<\/p>\n
A separate cannabis omnibus bill was also transmitted to Gov. Ned Lamont (D) this week that contains a number of reforms, including the establishment of off-site event permits for marijuana retailers, restricting intoxicating hemp-derived products and creating a new Office of the Cannabis Ombudsman.<\/p>\n
Under provisions of the budget legislation<\/a>, licensed cannabis businesses in the state would be able to deduct \u201cthe amount of ordinary and necessary expenses that would be eligible to be claimed as a deduction for federal income purposes\u2026but that are disallowed under Section 280E of the Internal Revenue Code because marijuana is a controlled substance under the federal Controlled Substance Act.\u201d<\/p>\n That measure also contains provisions on appropriations for cannabis social equity, substance misuse prevention and regulation funds. And it further repeals a tax credit for marijuana \u201cangel investors\u201d who financially support new cannabis businesses\u2014a policy change proposed by the governor earlier this year.<\/p>\n Lamont applauded the legislature\u2019s passage of the overall bill and announced on Tuesday that he intends<\/a> to sign it into law in the next few days.<\/p>\n The 280E fix is consistent with legislation that lawmakers in several states have pursued to provide relief for state marijuana markets, which face significantly higher effective tax rates under federal prohibition.<\/p>\n For example, Illinois lawmakers sent a budget bill to the governor this week<\/a> that includes language similarly allowing state-licensed cannabis to take tax deductions that they\u2019re barred from doing at the federal level under the IRS prohibition.<\/p>\n Also, the governor of New Jersey signed legislation<\/a> last month to allow licensed marijuana businesses to deduct certain expenses on their state tax returns as a partial IRS 280E workaround. Lawmakers in\u00a0Iowa<\/a>,\u00a0New York<\/a>,\u00a0Pennsylvania<\/a>\u00a0and\u00a0Virginia<\/a> have similarly pursued tax relief for each of their state\u2019s marijuana markets.<\/p>\n The New York Senate passed a bill on Monday to provide a 280E fix for New York City cannabis companies<\/a> at the local level because the already-enacted statewide reform didn\u2019t affect the city\u2019s separate tax law.<\/p>\n Back in Connecticut, separate marijuana omnibus legislation<\/a> that\u2019s also heading to the governor would additionally establish a definition for edible cannabis products and revise the rules for the state\u2019s lottery system for marijuana business licensing.<\/p>\n \u201cThis bill has multiple implications, affecting the lottery process for applicants by implementing a submission cap, modifying definitions, providing clarity on license types, reclassifying \u2018high-THC hemp products\u2019 as marijuana, and extending the deadlines for lottery applicants to obtain their final license,\u201d Michelle Bodian, partner at the cannabis and psychedelics law firm Vicente LLP, told Marijuana Moment.<\/p>\n \u201cThese changes have far-reaching consequences not only for future license holders but also for existing marijuana and hemp product businesses in Connecticut,\u201d she said. \u201cWhile some of the changes are expected to be viewed positively, others may disrupt businesses and future plans.\u201d<\/p>\n \u2014 Meanwhile, Connecticut\u2019s House of Representatives approved a bill last month to build on the state\u2019s marijuana legalization and expungements law<\/a> by requiring courts to reduce sentences or dismiss charges for a wider range of cannabis-related convictions and, accordingly, to release people who are currently incarcerated on those charges.<\/p>\n The House also passed a measure last month to bill to decriminalize possession of psilocybin mushrooms<\/a>.<\/p>\n Separately, Lamont announced in January that the state had cleared nearly 43,000 records for marijuana-related convictions. The legalization legislation that he signed into law in 2021<\/a>\u00a0empowered the state government\u00a0to facilitate mass cannabis conviction relief<\/a>.<\/p>\n The\u00a0state also launched a web portal in January<\/a>\u00a0that provides residents with information about the status of their cannabis records and also guides those with older eligible convictions that weren\u2019t automatically erased through the process of petitioning the courts for relief.<\/p>\n Lamont has embraced the state\u2019s adult-use market, which\u00a0launched at the beginning of the year<\/a>, saying that he\u2019s optimistic that it will mitigate illicit sales.<\/p>\n He also joked that one of his concerns about the cannabis industry rollout would be finding a place in line at one of the dispensaries. He wasn\u2019t being serious, but\u00a0the governor previously didn\u2019t rule out the idea<\/a>\u00a0of participating in the legal marketplace.<\/p>\n In March alone, Connecticut saw a record\u00a0$22 million in combined recreational and medical marijuana sales<\/a>, state data shows.<\/p>\n Senator Says \u2018Patchwork\u2019 Of Marijuana Laws Allows Big Business To Exploit Industry In Remarks For Anti-Monopoly Event<\/a><\/p>\n<\/blockquote>\n\n Photo courtesy of Chris Wallis \/\/ Side Pocket Images.<\/em><\/p>\n The post Connecticut Lawmakers Send Marijuana Industry Tax Relief And Regulation Bills To Governor<\/a> appeared first on Marijuana Moment<\/a>.<\/p>\n
Connecticut lawmakers have sent a budget bill to the governor that includes provisions to provide state-level tax relief to licensed marijuana businesses that are currently prohibited for making federal deductions under an Internal Revenue Service (IRS) code known as 280E. A separate cannabis omnibus bill was also transmitted to Gov.Continue Reading<\/a><\/span><\/p>\n","protected":false},"author":458,"featured_media":65707,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[18,81],"tags":[],"_links":{"self":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/65706"}],"collection":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/users\/458"}],"replies":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/comments?post=65706"}],"version-history":[{"count":1,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/65706\/revisions"}],"predecessor-version":[{"id":65708,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/65706\/revisions\/65708"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/media\/65707"}],"wp:attachment":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/media?parent=65706"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/categories?post=65706"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/tags?post=65706"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nRead More: Connecticut Lawmakers Send Marijuana Industry Tax Relief And Regulation Bills To Governor<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"