California regulators are adopting changes to the state’s marijuana licensing process that are intended to make it easier for businesses to qualify for tax deductions and other benefits in line with the Trump administration’s recent move to federally reschedule medical cannabis.
Under an action announced by the U.S. Department of Justice last week, marijuana products regulated by a state medical cannabis license immediately moved from Schedule I of the Controlled Substances Act to Schedule III, as did any marijuana products that are approved by the Food and Drug Administration (FDA). An administrative hearing scheduled for this summer will consider broader cannabis rescheduling, including for recreational products.
As such, Schedule III cannabis will no longer be subject to a federal tax rule known as 280E that prevents businesses from taking tax deductions that are available to other companies, while adult-use marijuana expenses are still not deductible for now.
On Thursday, the California Department of Cannabis Control (DCC) announced that it has “streamlined the process for changing a license designation” from recreational to medical under state law.
“Cultivation licensees no longer need to wait until renewal to request a change to their adult-use (A) or medicinal-use (M) designation,” the department said.
Additionally, DCC
Read full article on Marijuana Moment
