STATE OF NEW YORK
________________________________________________________________________
8808
IN ASSEMBLY
January 12, 2022
___________
Introduced by M. of A. LUPARDO -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law, in relation to permitting deductions for
commercial cannabis activity; and providing for the repeal of such
provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The tax law is amended by adding a new section 493-a to
2 read as follows:
3 § 493-a. Deductions. (a) For each taxable year beginning on or after
4 January first, two thousand twenty-two, and before January first, two
5 thousand twenty-five, the provisions of section 280E of the internal
6 revenue code, relating to expenditures in connection with the illegal
7 sale of drugs, shall not apply for the purposes of this chapter to the
8 carrying on of any trade or business that is commercial cannabis activ-
9 ity by a licensee.
10 (b) For the purposes of this section, the following definitions shall
11 apply:
12 (1)"Commercial cannabis activity" includes the cultivation,
13 possession, manufacture, distribution, processing, storing, laboratory
14 testing, packaging, labeling, transportation, delivery, or sale of
15 cannabis and cannabis products, or acting as the holder of an adult-use
16 on-site consumption license pursuant to article four of the cannabis
17 law.
18 (2) "Licensee" shall have the same meaning as defined in section three
19 of the cannabis law.
20 § 2. This act shall take effect on the same date and in the same
21 manner as section 39 of chapter 92 of the laws of 2021, takes effect,
22 and shall expire January 1, 2025 when upon such date the provisions of
23 this act shall be deemed repealed.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13586-01-1
