Title 26 — Internal Revenue Code
Part IX · Chapter 1 — Normal Taxes and Surtaxes
§ 280E. Expenditures in connection with the illegal sale of drugs
Statutory text
No deduction or credit shall be allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of schedule I and II of the Controlled Substances Act) which is prohibited by Federal law or the law of any State in which such trade or business is conducted.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 97–248 title III § 351(a) · 96 Stat. 324
Enacted · 26 U.S.C. § 280E
(Added Pub. L. 97–248, title III, § 351(a), Sept. 3, 1982, 96 Stat. 640.)
Source evidence
Code source credit
(Added Pub. L. 97–248, title III, § 351(a), Sept. 3, 1982, 96 Stat. 640.)Enacted provision · exact public law section
(a) In General.— Part IX of subchapter B of chapter 1 (relating to items not deductible) is amended by adding at the end thereof the following new section: “SEC. 280E. EXPENDITURES IN CONNECTION WITH THE ILLEGAL SALE OF DRUGS. “No deduction or credit shall be allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of schedule I and II of the Controlled Substances Act) which is prohibited by Federal law or the law of any 21 USC 812. State in which such trade or business is conducted.”
1 of 1 references resolved to an enrolled provision
Editorial Notes
References in Text
The Controlled Substances Act, referred to in text, is title II of Pub. L. 91–513, , 84 Stat. 1242, which is classified principally to subchapter I (§ 801 et seq.) of chapter 13 of Title 21, Food and Drugs. Schedules I and II are set out in section 812 of Title 21. For complete classification of this Act to the Code, see Short Title note set out under section 801 of Title 21 and Tables.
Statutory Notes and Related Subsidiaries
Effective Date
Pub. L. 97–248, title III, § 351(c), , 96 Stat. 640, provided that: “The amendments made by this section [enacting this section] shall apply to amounts paid or incurred after the date of the enactment of this Act [] in taxable years ending after such date.”
Credits
(Added Pub. L. 97–248, title III, § 351(a), , 96 Stat. 640.)