Statement on Proposed Legislation to Ensure Cannabis Companies Receive Benefits



"We support the legislature’s proposal to allow cannabis businesses operating under New York State law to take full advantage of state-level expense deductions available to all other businesses, and its inclusion in the Senate and Assembly budget resolutions. With the current federal treatment of cannabis, these deductions are not allowed under the Internal Revenue Code, which generally serves as the starting point for calculating state income taxes. However, New York often “decouples” from federal tax provisions that are inconsistent with state-level policy, as is the case here. These companies should have equal access to state tax policies that promote in-state investments and job creation. We urge that this issue be addressed in the final FY 2023 state budget."