Will we see tax reform in 2023 for cannabis sellers? Specifically, will Congress finally get something done about the pain inflicted on industry by the Internal Revenue Code at 26 USC § 280E? (“IRC 28oE”.) It feels like a long shot, but you never know.
After many attempts to get the SAFE Banking Act through Congress, I can say that the industry feels a little defeated on the federal front. Dems had two years of control to get the SAFE Banking Act passed and politics basically kept it from going through. I’ve been on panels with many experts who rightly take the position that the way to get to federal legalization is through a piecemeal legislative process; chipping away at prohibition one legal reform at a time. Hence, SAFE Banking made a lot of sense.
Now that it’s dead and gone (for now), the industry may take some tiny hope in the fact that Republican House Representative Nancy Mace is back again with some cannabis legislation. She started with the States Reform Act (which has gone nowhere), but is now looking at the biggest issue for the industry next to banking: federal cannabis income taxes. Specifically, the application of IRC
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