Legislative Breakthrough

In a significant move, the New York legislature has recently advanced Senate Bill S7508 to Governor Kathy Hochul. This bill is particularly aimed at providing tax relief for cannabis businesses in New York City, addressing a critical aspect of their financial operations.

Bill Status and Legislative Support

Following its approval in the legislative chambers, with a decisive floor vote of 43 in favor and 18 against, the bill has been officially transmitted to the governor for consideration. This development represents a proactive approach by the New York legislature to support the cannabis industry within the city.

Closing the Gap in Cannabis Business Taxation

The bill is designed to amend the current limitations placed on NYC cannabis businesses by federal IRS code 280E. It proposes tax deductions for expenses related to the sale, production, or distribution of cannabis products. This is a significant step in bridging the policy gap left by previous state-level tax deduction allowances. This change aims to harmonize New York City's tax laws with those of the state, filling a crucial policy void.

This legislation is a critical step in aligning New York City's policies with the state's progressive stance on cannabis, ensuring a more equitable and sustainable environment for the cannabis industry.