To amend the Internal Revenue Code of 1986 to allow deductions and credits relating to expenditures in connection with marijuana sales conducted in compliance with State law.

In general— Section 280E of the Internal Revenue Code of 1986 is amended by inserting before the period at the end the following: “, unless such trade or business consists of marijuana sales conducted in compliance with State law”.

Effective date— The amendment made by this section shall apply with respect to taxable years ending after the date of the enactment of this Act.