ALBANY, N.Y. (WTEN) — While New Jersey is allowing for the sale of cannabis without a medical card, New York recently passed legislation that allows dispensaries to acquire tax deductions on cannabis. What does this mean for the future of marijuana businesses?
Just a few short months ago cannabis businesses were unable to take out deductions on their state taxes, but now that’s changing. Lawmakers decoupled U.S. law 280E, which prohibits deductions or tax credits for businesses that sell a controlled substance.
Senator Jeremy Cooney says social equity has always been the goal. That’s why legislation was passed in the budget to allow marijuana businesses to deduct necessary expenses on their state taxes. Cooney says this measure mimics California’s cannabis policies.
“We have to make sure that whomever gets one of these licenses is set up for success. And whether that’s tax policy or whether that’s banking or whether that’s loans or whether that’s safety and security. We have to do all of that pre-work before people can go and walk into one of these dispensaries and buy a product,” said Cooney.
Tiffany Walters, CEO of NYS Cannabis Connect recently thought the lack of tax deductions would be a big hurdle for these businesses. Now, she feels this is a step in the right direction.
“I think that it’s wonderful news. I know that Senator Cooney and other senators in New York have been pushing for this change. It’s going to mean that Cannabis businesses are going to be able to make a profit a lot sooner,” she said.
Walters also says that the Cannabis Control Board has been ahead of schedule and we will likely see recreational cannabis sales by the end of this year.