Internal Revenue Code at 26 USC § 280E. That provision subjects cannabis operators to effective tax rates far north of 50%, more than any other businesses in United States. Cannabis remains a Schedule I substance in Controlled Substances Act. 280E IRC 280E Deductions and credits.
As part of its green transition, the United States recently introduced a tax-break scheme that favoured domestically produced electric vehicles. This has excluded Asian automakers, which currently produce a significant number of the electric vehicles purchased in the U.S., leading them to accuse the Biden administration of breaching international law. Trade lawyers dissect the potential disputes arising from the law, the legal remedies in place, and the ramifications ahead.