Indiana 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)?

    • Yes​, subject to further 280E analysis regarding company activities, structure, and applicable state laws.

  • See Indiana R&D Credit Summary​

State Law Background

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

  • Ind. Code Ann. § 15-15-13-1 to 15-15-13-17 (2016)           

    • Allows the production and possession of hemp by licensed growers for commercial and research purposes.

    • Growers and handlers of hemp seeds must obtain a hemp seed production license.

    • Nothing in this section allows anyone to violate federal law.

(2) Medical Marijuana State Law Authority & Background - Limited Access Marijuana Product Laws (low THC/high CBD- cannabidiol)

  • Statutory Language (year) - HB 1148 (2017)

    • Patient Registry or ID cards - Yes

    • Allows Dispensaries – Doesn’t define.

    • Specifies Conditions - Treatment resistant epilepsy.

    • Recognizes Patients from other states - No

    • Definition of Products Allowed – At least 5 percent CBD by weight. No more than .3 percent THC by weight.

  • 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?

  • No. The Indiana Controlled Substance Excise Tax was repealed on October 14, 2014. See 45 IAC § 19.

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