Federal officials say they will prioritize issuing tax-related guidance for marijuana businesses within the next year in light of the Trump administration’s move to federally reschedule cannabis.
Moving marijuana from Schedule I of the Controlled Substances Act (CSA) to Schedule III will have large tax implications for cannabis industry operators.
That’s because an Internal Revenue Service (IRS) code known as 280E, which has prevented them from taking ordinary tax deductions and credits that are available to most businesses, only applies to Schedule I and II substances.
The U.S. Department of the Treasury and IRS said in April that they plan to issue guidance on tax issues for marijuana businesses stemming from rescheduling, but that hasn’t yet happened.
But now, Treasury and IRS officials have included the issue in their 2026–2027 Priority Guidance Plan, indicating that they intend to follow through on providing tax clarity for cannabis businesses in the coming months.
The document includes “Guidance under §280E” in a list of 121 items officials plan to prioritize over the next year, though it doesn’t provide any additional marijuana-related information beyond that.
“Each year, the Treasury Department’s Office of Tax Policy and the IRS use the Guidance Priority List to identify
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