Maine State Cannabis Tax Deduction (280E Bypass) – Licensed Cannabis Businesses
Maine law (signed July 26, 2023, effective January 1, 2024) allows Maine-licensed cannabis businesses to claim state income tax deductions that are otherwise disallowed at the federal level under IRS Code Section 280E; applies to registered caregivers, dispensaries, manufacturing facilities, cannabis establishments, and testing facilities; a portion of cannabis excise tax revenue was redirected to compensate for the revenue impact of these deductions.
About this program
Visit the program website for full details.
Eligibility
Maine-licensed cannabis businesses including registered caregivers, medical dispensaries, adult use manufacturing facilities, cannabis establishments, and testing facilities; deductions apply to Maine state income taxes only; federal 280E prohibitions remain.
Requirements
- Hold an active Maine cannabis license or registration as a caregiver, dispensary, manufacturing facility, cannabis establishment, or testing facility
- Deductions claimed on Maine state income tax returns starting with tax year 2024
- Consult a Maine CPA or tax advisor for specific deduction categories applicable to your license type