Bloomberg Tax
July 13, 2021, 6:02 PM

Marijuana Companies Seek Supreme Court Rehearing on Tax Break

Aysha Bagchi
Aysha Bagchi

Colorado marijuana companies seized on Supreme Court Justice Clarence Thomas’s skepticism about federal policy on cannabis as they asked the high court for a second time to review their fight with the IRS.

The companies’ request came through a petition filed Monday, the latest step in their battle against the IRS over whether they violated tax code Section 280E, which denies tax breaks for expenses to businesses that traffic in controlled substances, including cannabis.

The rehearing request highlighted a statement from Thomas describing the federal government’s current approach to local marijuana use as “half-in, half-out.” The justice made the ...