[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1985 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 1985

  To amend the Internal Revenue Code of 1986 to allow a deduction for 
expenses in connection with the trade or business of selling marijuana 
   intended for patients for medical purposes pursuant to State law.


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                    IN THE HOUSE OF REPRESENTATIVES

                              May 25, 2011

 Mr. Stark (for himself, Mr. Rohrabacher, Mr. Polis, Mr. Paul, and Mr. 
   Frank of Massachusetts) introduced the following bill; which was 
              referred to the Committee on Ways and Means

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                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to allow a deduction for 
expenses in connection with the trade or business of selling marijuana 
   intended for patients for medical purposes pursuant to State law.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Tax Equity Act of 
2011''.

SEC. 2. DEDUCTION ALLOWED FOR EXPENSES IN CONNECTION WITH SALES OF 
              MARIJUANA.

    (a) In General.--Section 280E of the Internal Revenue Code of 1986 
is amended--
            (1) by striking ``No deduction'' and inserting ``(a) In 
        General.--No deduction'', and
            (2) by adding at the end the following new subsection:
    ``(b) Exception.--Subsection (a) shall not apply to amounts paid or 
incurred in connection with the portion of the trade or business 
consisting of sales of marihuana (as defined by section 102(16) of the 
Controlled Substances Act) intended for patients for medical purposes 
pursuant to the law of a State.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to amounts paid or incurred after the later of--
            (1) the date of the enactment of this Act, or
            (2) the date on which the State law referred to in section 
        280E(b) of the Internal Revenue Code of 1986 (as added by 
        subsection (a)) is first effective.
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