NYS Senator Cooney & NYS Assemblywoman Lupardo Announce Cannabis Tax Deduction Bill’s Passage in Final New York State Budget
(ALBANY, NY) - Senator Jeremy Cooney (D-Rochester) and Assemblywoman Donna Lupardo (D-Endwell) announced the inclusion of legislation to allow licensed cannabis operators to make normal business deductions in New York in the final state budget.
A8808/S7518 would amend NYS tax law to permit all licensed cannabis businesses to deduct ordinary and necessary business expenses when filing state tax returns. Currently, U.S. Internal Revenue Code 280E prohibits licensed cannabis businesses from making these types of deductions, creating an unnecessary barrier to entry for many small businesses.
It is estimated that the tax credit would save businesses over $25 million annually by 2024 and help foster long term growth in the industry. This legislation is crucial to allowing small, local businesses to carve out a place in the new marketplace. This is a key step forward to creating the most equitable recreational cannabis market in the country.
Senator Jeremy Cooney:
“The MRTA was crafted with a focus on equity at all stages of implementation in the new recreational adult-use cannabis market. We must ensure that this focus includes licensing and taxation of these new businesses is top of mind while we create the foundations of this new sector of the economy. I am proud to have sponsored legislation that will create a more equitable taxation system to allow more small business owners and entrepreneurs to participate in the new cannabis market, especially social equity owned businesses.”
Assemblywoman Donna Lupardo:
“NY’s cannabis industry already employs hundreds and will be expanding significantly in the years to come. As a result of our advocacy, all hemp related, medical and adult-use cannabis businesses will now be able to take standard business deductions. This is fundamentally about fairness, equity, and a recognition that our tax system should not treat these businesses any differently, in spite of the federal prohibition.”
Allan Gandelman, President of the New York Cannabis Growers & Processors Association:
“The New York Cannabis Growers & Processors Association thanks Governor Hochul, Assemblywoman Lupardo, Senator Cooney and the New York State Assembly and Senate leadership for including the 280E amendment in the final budget. We are encouraged by this momentous step in correcting the prohibitionist tax law. New Yorkers must be enabled to find success in the legal market and the tax rates and operational costs that cannabis businesses would currently face is a significant barrier. Rectifying 280E is a necessary step in forging a path to profitability for businesses in New York’s adult-use cannabis industry while giving social equity entrepreneurs an opportunity to build wealth. There is much to be optimistic about in the forthcoming adult use cannabis market, but we must continue to be accountable and do the necessary work to establish an industry that is reflective of our state and the goals set out by the MRTA.”
Paul Zuber, Executive Vice President, The Business Council of New York State:
“We are pleased to see the legislature has agreed to treat the cannabis industry as any other legitimate operating business in New York State and afford licensed operators the ability to take advantage of state-level business expense deductions. We applaud Senator Cooney’s leadership efforts on this matter, as well as Governor Hochul and Assemblymember Lupardo for allowing the cannabis industry to decouple from federal provisions and granting them equal access to the tax policies meant to promote in-state investments and job creation.”
Steve DeAngelo, Cannabis Entrepreneur, Activist, & Author:
“Senator Cooney’s bill just makes common sense. Once a business is legalized, it should be taxed the same way all other legal businesses are taxed.”
Greater Rochester Chamber of Commerce President and CEO Bob Duffy:
“Allowing cannabis businesses to make normal tax deductions is crucial to the success of these cutting-edge new enterprises. Thank you to Senator Cooney for his work in making the Greater Rochester/Finger Lakes region a leader in this emerging industry by proposing this legislation that will help entrepreneurs succeed as they help strengthen our local economy.