RE:RE:New updated SAFE banking act
DashForCash wrote: Great find Birdman! I did not know it was on the floor tomorrow - appreciate the heads up.
Does anybody know if 280E reform is part of this bill? That would be an absolute game changer for profitability.
It could be included in a future package but currently SAFE remains a stand alone
But hey there is a loophole to help for now!
Thanks to Congress’ irrational fear of potential constitutional challenges to the law, an exclusion was added to the section 280E tax code. The exclusion in question is known as the “cost of goods sold” exception.
This exception includes expenses directly related to the production of the plants. That would mean for growers it refers to the seeds, electricity, the labor—anything that directly went into the growing and preparation of cannabis to sell.
For dispensary owners, this exception is restricted to the amount they paid for the cannabis products for their retail.