Nebraska 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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No, subject to further 280E restrictions.
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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
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Neb. Rev. Stat. § 2-5701 (2016)
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Allows a postsecondary institution or the Nebraska Department of Agriculture to grow hemp for research purposes.
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(2) Medical Marijuana State Law Authority & Background - N/A
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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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Yes. Nebraska imposes a Marijuana and Controlled Substances Tax on any person acting as a dealer in marijuana. A person is a dealer if he or she illegally acquires, possesses, manufactures, ships, transports or imports 6 or more ounces of marijuana. See Neb. Rev. Stat. § 77-4301. The tax rate is $100 on each ounce or portion thereof of marijuana. A dealer subject to the tax must purchase stamps, labels or other official indicia from the Department of Revenue and affix them to the marijuana or controlled substances.
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For reference: Nebraska Marijuana and Controlled Substances Tax Information Guide
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For reference: Nebraska Marijuana and Controlled Substances Tax Statutes