EXCLUSIVE: Weed Companies Will Be Treated Like Normal Businesses Once This Tax Provision Goes Away, Experts Say
Marijuana companies would be “treated like normal businesses,” if the oppressive restrictions of Section 280E of the Internal Revenue Code, which prevents cannabis businesses from deducting typical business expenses, go away.
That’s according to Darren Weiss, president of Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX:VRNOF), who joined three other industry experts at the Benzinga Cannabis Capital Conference in Chicago on Tuesday for the panel, “Life After 280E, Different Companies, Different Scenarios: More Money For All?”
Without paying 280E taxes, companies such as Verano with active operations spanning 14 U.S. states, would have additional dollars to direct toward research and development efforts.
Having extra cash is an “opportunity to engage in more sort of hard science R&D which is not been the bulwark of this industry,” Weiss told the crowd at the Marriott Magnificent Mile. He added that single-state operators would also be able to do business successfully and “survive.”
Laurie Holcomb, CEO of Gold Flora Corp (OTC:GRAM); Mackenzie Peterson, vice president of marketing at AdvisorShares Pure US Cannabis ETF (NYSE:MSOS) and Peter Sack, managing partner at Chicago Atlantic Real Estate Finance Inc (NASDAQ:REFI), also …