Internal Revenue Code · 26 U.S.C.
§ 280E. Expenditures in connection with the illegal sale of drugs
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 280E
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Added
- September 3, 1982 by Pub. L. 97–248
- Length
- 88 words · about 1 min to read
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.
(Added Pub. L. 97–248, title III, § 351(a), Sept. 3, 1982, 96 Stat. 640.)
Amendment history
From the source credit and the official notes, newest first.
- Added by Pub. L. 97–248
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter B Computation of Taxable Income
- Part IX ITEMS NOT DEDUCTIBLE
Nearby sections
- § 280A Disallowance of certain expenses in connection with business use of home, rental of vacation homes, etc.
- § 280B Demolition of structures
- § 280C Certain expenses for which credits are allowable
- § 280D Repealed
- § 280E Expenditures in connection with the illegal sale of drugs
- § 280F Limitation on depreciation for luxury automobiles; limitation where certain property used for personal purposes
- § 280G Golden parachute payments
- § 280H Limitation on certain amounts paid to employee-owners by personal service corporations electing alternative taxable years
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
References in Text
The Controlled Substances Act, referred to in text, is title II of Pub. L. 91–513, Oct. 27, 1970, 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), Sept. 3, 1982, 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 [Sept. 3, 1982] in taxable years ending after such date.”