26 U.S.C. § 280E : US Code - Section 280E: Expenditures in connection with the illegal sale of drugs

Search 26 U.S.C. § 280E : US Code - Section 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.