26 USC § 280E - Expenditures in connection with the illegal sale of drugs

---
identifier: "/us/usc/t26/s280E"
source: "usc"
legal_status: "official_prima_facie"
title: "26 USC § 280E - Expenditures in connection with the illegal sale of drugs"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
section_number: "280E"
section_name: "Expenditures in connection with the illegal sale of drugs"
chapter_number: 1
chapter_name: "NORMAL TAXES AND SURTAXES"
subchapter_number: "B"
subchapter_name: "Computation of Taxable Income"
part_number: "IX"
part_name: "ITEMS NOT DEDUCTIBLE"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Added Pub. L. 97–248, title III, § 351(a), Sept. 3, 1982, 96 Stat. 640.)"
---


# § 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.

---

**Source Credit**: (Added Pub. L. 97–248, title III, § 351(a), Sept. 3, 1982, 96 Stat. 640.)

## Editorial Notes

### References in Text

The Controlled Substances Act, referred to in text, is title II of , , , 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 . For complete classification of this Act to the Code, see Short Title note set out under  and Tables.

## Statutory Notes and Related Subsidiaries

### Effective Date

> “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 [
> 
> ] in taxable years ending after such date.”

, , , provided that: