
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC280E]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
               Subchapter B--Computation of Taxable Income
 
                      PART IX--ITEMS NOT DEDUCTIBLE
 
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 State in which such trade or 
business is conducted.

(Added Pub. L. 97-248, title III, Sec. 351(a), Sept. 3, 1982, 96 Stat. 
640.)

                       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, as amended, which is 
classified principally to subchapter I (Sec. 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.


                             Effective Date

    Section 351(c) of Pub. L. 97-248 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.''
