Idaho Cannabis & Hemp Industries 

IRC § 280E Analysis / R&D Tax Credit Eligibility
  • Does Section 280E Apply to state individual income tax?

    • N/A

  • Does Section 280E apply to state corporate income tax?

    • N/A

  • Are State R&D Tax Credits Potentially Eligible for "Plant Touching" (e.g. producers, cultivators, manufacturers, retailers) Cannabis Companies?

    • N/A  

  • Are State R&D Tax Credits Potentially Eligible for Industrial Hemp Companies & "Non-Plant Touching" Separate Trade or Businesses (e.g. testing laboratories)?

    • N/A

  • See Idaho R&D Credit Summary​

State Law Background

(1) Hemp State Law Authority & Background​ - N/A

  • Does not allow cultivation of hemp.

(2) Medical Marijuana State Law Authority & Background - N/A

  • SB 1146 (VETOED by governor 4/16/15)

    • Patient Registry or ID cards - No

    • Allows Dispensaries - Doesn't define.

    • Specifies Conditions - The possessor has, or is a parent or guardian of a person that has, cancer, amyotrophic lateral sclerosis, seizure disorders, multiple sclerosis, Crohn's disease, mitochondrial disease, fibroymyalgia, Parkinson's disease or sickle cell disease;

    • Recognizes Patients from other states – No

    • State Allows for Retail Sales/Adult Use – N/A

    • Definition of Products Allowed - Is composed of no more than three-tenths percent (0.3%)  tetrahydrocannabidiol by weight;  is composed of at least fifteen (15) times more cannabidiol than tetrahydrocannabidiol by weight; and contains no other psychoactive substance.

  • Are sales of medical marijuana subject to sales tax?

    • N/A 

  • Is medical marijuana subject to an excise tax?

    • N/A

(3) Recreational Marijuana State Law Authority & Background​​​ - N/A

  • Are sales of recreational marijuana subject to sales tax?

    • N/A

  • Is recreational marijuana subject to an excise tax?

    • N/A

(4) Does the State impose a Stamp Tax or Controlled Substances Tax?

  • Yes. Idaho imposes an “Illegal Drug Tax” on persons who possess controlled substances in violation of Idaho law. A “controlled substance” includes (1) more than 42.5 grams of marijuana, and (2) one or more growing marijuana plants, that are possessed in violation of Idaho law. The tax rate is $3.50 per gram of marijuana or portion of a gram, and $775 per growing marijuana plant. See Idaho Code § 63-4203. The tax is payable through the medium of official stamps, labels or other indicia designated by, purchased from and sold by the State Tax Commission. See Idaho Code § 63-4204(3).

  • For reference: Idaho Illegal Drug Stamp Tax Act

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