We’ve been preparing for this potential shift, and our team is ready to help you think through what comes next as part of your planning.
Evaluate whether qualifying medical operations may benefit from changing tax treatment as guidance develops, and prepare for possible broader reform.
Review potential amended filing opportunities, subject to IRS guidance and your specific facts and circumstances.
Model potential cash flow improvements and identify smart uses of additional liquidity if available..
Strengthen payroll, reporting, and financial systems that support growth, compliance, and stronger cash visibility.
Strengthen credit, collections, and internal controls as your business scales.
Implement banking and payment strategies that support stability today and flexibility going forward.
Explore financing and refinancing options that may become more accessible over time.
Engage with lending partners who understand cannabis-specific operating realities.
Support longer-term planning in an evolving regulatory environment.
The U.S. Department of Justice announced an order moving certain state-licensed medical marijuana activity and FDA-approved marijuana-derived drug products to Schedule III under federal law. This is a meaningful development for qualifying medical activity, but it does not federally legalize cannabis and does not currently extend to adult-use cannabis.
Potentially. Because Section 280E applies to Schedule I and II substances, qualifying medical activity moved to Schedule III may receive different tax treatment. Implementation details, business structure, and IRS guidance will matter. Operators should consult qualified tax advisors based on their specific facts and circumstances.
No. Banking cannabis businesses still requires strong compliance practices, including BSA/AML controls, due diligence, transaction monitoring, and ongoing documentation. This update may improve industry sentiment over time, but it does not eliminate core banking requirements today.
Over time, yes. If certain operators benefit from improved cash flow, stronger financial statements, or lower tax burden, lenders and investors may evaluate opportunities differently. Businesses with organized financials, disciplined operations, and clear reporting are typically best positioned first.
Operators should focus on strong fundamentals: accurate financial reporting, reliable bookkeeping, better cash visibility, clear entity and revenue segmentation, realistic tax planning, and readiness to move quickly if broader reform follows.
No. Federal and state compliance, reporting, and oversight requirements remain in place. This update does not reduce obligations related to licensing, financial reporting, or transaction monitoring. In some cases, increased federal recognition may lead to greater expectations around accuracy, controls, and documentation.
Yes. Additional federal proceedings have been announced regarding broader marijuana rescheduling. While outcomes and timing remain uncertain, many operators are using this moment to improve readiness in case broader reform follows.
