26 U.S.C. § 280E — Expenditures in connection with the illegal sale of drugs
submitted 44 years ago by Pub. L. 97-248 to r/title-26-INTERNAL-REVENUE-CODE · 77 words · no verdicts yet
This law bans tax deductions and credits for businesses that traffic in Schedule I or II drugs. The ban applies if that trafficking is illegal under federal law or the law of the business's state. It covers every cost of running such a business.
If a trade or business* — or the activities that make it up — consists of trafficking in controlled substances, no deduction or credit is allowed for any amount paid or spent that year in running it.
"Controlled substances" here means those listed in Schedule I or Schedule II of the Controlled Substances Act.
This ban applies if the trafficking is prohibited either by federal law, or by the law of the state where the business operates.
No deduction or credit shall be allowed for any amount paid or incurred during the taxable year* in carrying on any trade or business* if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of schedule I and II of the Controlled Substances Act) which is prohibited by Federal law or the law of any State in which such trade or business is conducted.
Source credit: (Added Pub. L. 97–248, title III, § 351(a), Sept. 3, 1982, 96 Stat. 640.)
- 1982Enacted · Pub. L. 97-248 · 96 Stat. 640
A history note hasn’t been published yet. The record shows enactment by Pub. L. 97-248 on 1982-09-03.
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