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Florida Cannabis & Hemp Industries 

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IRC § 280E Analysis / R&D Tax Credit Eligibility

  • Does Section 280E Apply to state individual income tax?

    • N/A (no personal income tax).

  • Does Section 280E apply to state corporate income tax?

    • Yes. Florida conforms to the Internal Revenue Code. The starting point is Federal taxable income. There is no provision stating that Section 280E does not apply. 

  • Are State R&D Tax Credits Potentially Eligible for "Plant Touching" (e.g. producers, cultivators, manufacturers, retailers) Cannabis Companies?

    • No, subject to 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 Florida R&D Credit Summary​

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State Law Background

(1) Hemp State Law Authority & Background​

  • S 1726 (Enacted; Effective June 16, 2017)

  • Florida SB 1020 (2019) / Fla. Stat. § 581.217

    • Directs the Department of Agriculture and Consumer Services to authorize and oversee the development of industrial hemp pilot projects at certain universities. Commercialization projects may be allowed after two years with certain conditions.

    • Authorizes the universities to develop pilot projects in partnership with public, nonprofit, and private entities;

    • Requires a university to submit a report within two years of establishing a pilot program.

    • Establishes the state hemp program and directs the Department of Agriculture and Consumer Services, including a land registry and licensing, to submit a plan to USDA.

    • Provides requirements for the distribution and sale of hemp extract.

    • Establishes an industrial hemp advisory council.

 

(2) Medical Marijuana State Law Authority & Background 

  • Statutory Language (year) - Compassionate Medical Cannabis Act of 2014 CS for SB 1030 (2014) CS for SB 1030 (2014) Patient treatment information and outcomes will be collected and used for intractable childhood epilepsy research; *Amendment 2 (2016) Details pending

    • Patient Registry or ID cards - Yes (Pending amendment)

    • Allows Dispensaries – Yes, 5 registered nurseries across the state by region, which have been in business at least 30 years in Florida (Pending amendment)

    • Specifies Conditions - Yes, cancer, medical condition or seizure disorders that chronically produces symptoms that can be alleviated by low-THC products (Pending amendment)

    • Recognizes Patients from other states - No

    • State Allows for Retail Sales/Adult Use - Cannabis with low THC= below .8% THC and above 10% CBD by weight

  • Are sales of medical marijuana subject to sales tax?

    • N/A. 

  • Is medical marijuana subject to an excise tax?

    • No.

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(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

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(4) Does the State impose a Stamp Tax or Controlled Substances Tax?

  • No.

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