Pennsylvania’s governor has approved a package of budget legislation that excludes provisions to legalize adult-use marijuana that he had requested. One of the bills does, however, include a section allowing certain medical cannabis businesses to take state-level tax deductions as a partial workaround to the federal Internal Revenue Service (IRS) code known as 280E.
The 2025 budget legislation officially passed both chambers on Thursday and was signed into law the same day. While Gov. Josh Shapiro (D) had proposed recreational marijuana legalization as part of his budget request that was submitted in February, the reform did not materialize in the measure that’s been now enacted.
This comes amid heightened discussions about legalization cannabis in the legislature, with hearings, bill introductions and press conferences highlighting the need to enact the policy change, especially as surrounding states move ahead.
“The legislature left a critical issue behind as they crafted a budget that did not include adult-use cannabis,” Brit Crampsie, spokeswoman for the advocacy organization ResponsiblePA, said in a press release on Friday. “Pennsylvanians are demanding action on the legalization of adult-use cannabis. An adult-use market can bring more than a billion dollars to the state in its first year, and every moment
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