No Deductions for Marijuana Businesses Act

# No Deductions for Marijuana Businesses Act (HR 1447) - Summary **What the Bill Would Do** This bill would prevent marijuana businesses from claiming standard tax deductions on their federal income taxes. Currently, even though marijuana remains illegal under federal law, some cannabis companies can deduct ordinary business expenses (like rent, payroll, and equipment). This bill would eliminate that ability, effectively increasing the tax burden on legally operating cannabis businesses in states where it's permitted. **Who It Affects** The bill would directly impact marijuana companies operating in states where cannabis is legal, including dispensaries, growers, and related businesses. It could indirectly affect consumers through potentially higher prices if businesses pass along increased tax costs.

The bill does not affect individuals or other industries. **Current Status** HR 1447 is currently in committee and has not advanced further in the legislative process. It was introduced by Rep. Jodey Arrington (R-TX) in the 119th Congress. For the bill to become law, it would need to pass out of committee, be voted on by the full House, pass the Senate, and be signed by the President.