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S. 777Senate115th Congress (2017-2019)In Committee

Small Business Tax Equity Act of 2017

Sponsored by Ron WydenSen. Ron Wyden (D-OR)
Introduced March 30, 2017

AI-Generated Summary

Updated April 15, 2026 at 2:16 PM UTC

The Small Business Tax Equity Act of 2017 changes the federal tax code so that businesses that sell marijuana legally under state law can claim ordinary business deductions and tax credits. Previously, Section 280E barred those expenses, putting legal marijuana businesses at a tax disadvantage. The amendment applies to any taxable year after the law is enacted and affects marijuana growers, dispensaries, and other related small businesses that operate in compliance with state regulations.

Key Provisions

  • Amends Internal Revenue Code Section 280E to add language that the disallowance of deductions and credits does not apply to businesses whose marijuana sales are conducted in compliance with state law.
  • The change takes effect for tax years ending after the law’s enactment, allowing eligible marijuana businesses to deduct ordinary expenses and claim tax credits.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

Finance Committee

March 30, 2017

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SenateIntro Referral

Introduced in Senate

March 30, 2017

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

March 30, 2017

Bill Text

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Introduced in SenateIssued March 30, 2017

II

115th CONGRESS

1st Session

S. 777

IN THE SENATE OF THE UNITED STATES

March 30, 2017

Mr. Wyden (for himself, Mr. Paul, Mr. Bennet, and Mrs. Murray) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to allow deductions and credits relating to expenditures in connection with marijuana sales conducted in compliance with State law.

1.

Short title

This Act may be cited as the Small Business Tax Equity Act of 2017.

2.

Allowance of deductions and credits relating to expenditures in connection with marijuana sales conducted in compliance with State law

(a)

In general

Section 280E of the Internal Revenue Code of 1986 is amended by inserting before the period at the end the following: , unless such trade or business consists of marijuana sales conducted in compliance with State law.

(b)

Effective date

The amendment made by this section shall apply with respect to taxable years ending after the date of the enactment of this Act.