NYC Cannabis Businesses Set to Receive Local Tax Deductions

Marijuana businesses in New York City would be allowed to claim local tax deductions under a bill state lawmakers approved this week.

The legislation (S07508/A07692) would let the businesses deduct ordinary and necessary business expenses from their city taxes, although they can’t deduct them from federal taxes under Section 280E of the federal tax code. The state Senate passed the bill on June 5, and the House approved it Thursday.

The measure next heads to Gov. Kathy Hochul (D), who signed a budget bill last year that allowed state-level cannabis business tax deductions. New York City law ...