Today's Law As Amended


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AB-1863 Personal income tax: deduction: commercial cannabis activity.(2017-2018)



As Amends the Law Today


SECTION 1.

 Section 17209 is added to the Revenue and Taxation Code, to read:

17209.
 (a) For each taxable year beginning on or after January 1, 2018, Section 280E of the Internal Revenue Code, relating to expenditures in connection with the illegal sale of drugs, shall not apply to the carrying on of any trade or business that is commercial cannabis activity by a licensee.
(b) For purposes of this section, “commercial cannabis activity” and “licensee” shall have the same meanings as set forth in Division 10 (commencing with Section 26000) of the Business and Professions Code.
SEC. 2.
  This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.