A federal proposal that would prevent marijuana businesses from claiming standard tax deductions—regardless of whether marijuana is rescheduled—has gained its 13th congressional sponsor.
Representative Nathaniel Moran (R-TX) signed on to the House version of the bill on Thursday, joining ten other lawmakers. Known as House Bill 1447, the measure was introduced last month by Representative Jodey Arrington (R-TX). It would amend the Internal Revenue Code so that marijuana businesses would remain ineligible for common deductions like rent, utilities, and employee wages, even if marijuana is moved from Schedule I to Schedule III under federal law.
Currently, Section 280E of the tax code blocks such deductions for businesses associated with Schedule I or II drugs. Rescheduling marijuana to Schedule III—as recommended by the U.S. Department of Health and Human Services—would normally lift that restriction. However, HB 1447 would override this change, keeping those tax penalties in place.
A companion bill in the Senate, S. 471, has two sponsors, bringing the total number of lawmakers backing the legislation to 13.
The bill’s advancement comes as the Drug Enforcement Administration has yet to act on marijuana rescheduling, after canceling administrative hearings earlier this year. Meanwhile, no other marijuana-related bill this session has received more than a single congressional sponsor.
