Indiana Cannabis & Hemp Industries
IRC § 280E Analysis / R&D Tax Credit Eligibility
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Does Section 280E Apply to state individual income tax?
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N/A.
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Does Section 280E apply to state corporate income tax?
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N/A.
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Are State R&D Tax Credits Potentially Eligible for "Plant Touching" (e.g. producers, cultivators, manufacturers, retailers) Cannabis Companies?
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N/A.
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Are State R&D Tax Credits Potentially Eligible for Industrial Hemp Companies & "Non-Plant Touching" Separate Trade or Businesses (e.g. testing laboratories)?
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Yes, subject to further 280E analysis regarding company activities, structure, and applicable state laws.
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State Law Background
(1) Hemp State Law Authority & Background - N/A
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Ind. Code Ann. § 15-15-13-1 to 15-15-13-17 (2016)
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Allows the production and possession of hemp by licensed growers for commercial and research purposes.
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Growers and handlers of hemp seeds must obtain a hemp seed production license.
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Nothing in this section allows anyone to violate federal law.
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(2) Medical Marijuana State Law Authority & Background - Limited Access Marijuana Product Laws (low THC/high CBD- cannabidiol)
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Statutory Language (year) - HB 1148 (2017)
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Patient Registry or ID cards - Yes
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Allows Dispensaries – Doesn’t define.
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Specifies Conditions - Treatment resistant epilepsy.
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Recognizes Patients from other states - No
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Definition of Products Allowed – At least 5 percent CBD by weight. No more than .3 percent THC by weight.
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Are sales of medical marijuana subject to sales tax?
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N/A
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Is medical marijuana subject to an excise tax?
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N/A
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(3) Recreational Marijuana State Law Authority & Background - N/A
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Are sales of recreational marijuana subject to sales tax?
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N/A.
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Is recreational marijuana subject to an excise tax?
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N/A.
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(4) Does the State impose a Stamp Tax or Controlled Substances Tax?
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No. The Indiana Controlled Substance Excise Tax was repealed on October 14, 2014. See 45 IAC § 19.