Legislation that would allow marijuana businesses that are legal under state law to take standard state-level tax deductions has been passed by the full Illinois Legislature.
House Bill 3817 was filed by State Representative Jehan Gordon-Booth along with 19 cosponsors, all Democrat. The measure will now to sent to Governor J. B. Pritzker for consideration after passing the Senate 36 to 20, and passing the House 73 to 38.
The legislation, which covers a variety of topics, includes a provision that would alter the state’s existing tax code to allow marijuana businesses to take deductions for “an amount equal to the deductions that were disallowed under Section 280E of the Internal Revenue Code for the taxable year”.
The legislation is seen as a partial remedy to IRS code 280E, which prevents federally illegal entities from taking tax deductions. Although the measure doesn’t allow marijuana businesses to take federal tax deductions, it would allow them to take the state-level tax deductions the same as any other legal business in Illinois.
According to data released by the Illinois Cannabis Regulation Oversight Officer, the state sold $50 million worth of legal marijuana and marijuana products in April. This brings the year-to-date total to almost $150 million