Erik M. Jensen (Case Western), Tax Points Affecting Marijuana Companies, 67 S.D. L. Rev. 465 (2022):

This text considers a number of points affecting Inner Income Code part 280E, which denies income-tax deductions and credit to companies trafficking in managed substances. Regardless that marijuana is authorized in an rising variety of states, it stays a managed substance below federal legislation and part 280E subsequently applies to marijuana companies. Consequently, investing in a marijuana enterprise is way much less enticing than it will in any other case be. The article discusses problems with statutory interpretation however, extra essential, considers whether or not an nearly full denial of deductions and credit converts what’s in kind an earnings tax into one thing else. If the “earnings” tax as utilized to a marijuana enterprise just isn’t on earnings, throughout the that means of the Sixteenth Modification, it might need to be apportioned among the many states on the premise of inhabitants to be constitutional (the so-called direct tax apportionment rule).