Will Federal Policy Changes Finally Free Cannabis Businesses From Tax Burdens?
As the cannabis industry awaits potential federal policy changes, Beau Whitney, founder and chief economist at Whitney Economics, shares his analysis of how these reforms could reshape its financial future. His observations come ahead of the Benzinga Cannabis Capital Conference this October, where he will discuss his findings for the next decade. Whitney’s perspective sheds light on the potential financial benefits of rescheduling cannabis to Schedule III and the wider implications for the industry.
Does Rescheduling Cannabis Mean Financial Relief?
The cannabis industry is currently hampered by the 280E tax provision, which prevents businesses from deducting normal business expenses. Whitney pointed out that rescheduling cannabis to Schedule III could significantly alleviate this tax burden.
“Rescheduling could relieve operators of the 280E tax burden, providing much-needed cash flow,” Whitney explained. He says change would enable cannabis businesses …