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.)
BACKGROUND NOTES
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.”
