California’s Weed Businesses Can Deduct Expenses Under New Law
Beginning next year, California’s marijuana businesses will be able to deduct their expenses from state income taxes the same way other partnerships and sole proprietors do. It’s a game changer for many businesses at a tax disadvantage because of the treatment of cannabis enterprises under both state and federal tax law.
AB 37 was authored by Assemblyman Reggie Jones-Sawyer and signed by Gov. Gavin Newsom. A previous attempt was vetoed by Jerry Brown.
AB 37 affects state income deductions only. Marijuana businesses remain unable to take federal tax deductions due to cannabis’ illegal status under federal law.
Read more at Marijuana Businesses Daily.