Nebraska 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?

    • No​, subject to further 280E restrictions. 

  • 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 Nebraska R&D Credit Summary​

State Law Background

(1) Hemp State Law Authority & Background​ 

  • Neb. Rev. Stat. § 2-5701 (2016)

    • Allows a postsecondary institution or the Nebraska Department of Agriculture to grow hemp for research purposes.

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

  • 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. 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.

  • For reference: Nebraska Marijuana and Controlled Substances Tax Information Guide

  • For reference: Nebraska Marijuana and Controlled Substances Tax Statutes

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