Stay Compliant with the Latest Marijuana Executive Orders
We break down the executive orders that impact cannabis operators, providing clear guidance on tax, compliance, and operational requirements so you can make informed financial decisions.
Marijuana Executive Order FAQ‘s
The most recent Marijuana Executive Order can have significant implications for dispensaries, cultivators, and other cannabis businesses. We’ve summarized the key points so you can stay compliant, make informed financial decisions, and focus on running your business with confidence.
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No. The Order does not legalize recreational or medical marijuana use or possession under federal law. It only directs the Attorney General to reschedule marijuana from Schedule I to Schedule III.
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Once the rescheduling is finalized, §280E would no longer apply. §280E only restricts deductions for Shedule I & II controlled substances.
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The executive order directs the Attorney Gneral to reschedule marijuana to Schedule III, “in the most expeditious manner.” Our belief is that this rule change will be made effective for the 2025 tax year, but this has not been confirmed. More guidance will be released by the DOJ, DEA, & IRS.
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While the order specifically mentions medical marijuana, rescheduling would affect both retail and medical marijuana.
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No. As of now, the rules do not indicate that this cahnge will be made retroactive. We will update you if this changes.
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Not directly. Since marijuana is still federally illegal, banks still will have additional reporting requirements which have deterred most banks from providing service to the cannabis industry. Passage of some legislation, such as the SAFE Banking Act, will be imment once the rescheduling has been finalized.