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’Twas the week before Christmas, a moment to pause
No change yet in taxes, no shift in the laws
But something feels different, not loud or fast
A sense that the hardest part may be past.
Work slows its grip, the urgency cracks
The phones go quiet, and perspective comes back.
At Safe Harbor Financial, that’s how we’re feeling about the cannabis industry right now.
Nothing has changed yet. There is no tax relief today.280E is still in place, and the timing remains uncertain. But President Trump’s executive order signed on December 18 has added real momentum, directing the Attorney General to expedite the rescheduling process. For the first time in along while, it feels reasonable to believe that meaningful relief may arrive.
And when it does, it won’t be flashy. It will be practical. Relief from 280E would ripple through the industry in quiet, meaningful ways like improving cash flow, strengthening relationships, and creating more breathing room across the supply chain.
We’re also encouraged by trends already underway: strong growth in convenient formats like pre-rolls and infused beverages, ongoing product innovation drawing in wellness-focused consumers, and steady demand supporting a maturing market.
So rather than dwelling on familiar challenges, we want to focus on what that brighter future could look like for cannabis businesses across the industry.
Dispensaries
For dispensaries, the shift would be felt quickly. Being able to deduct everyday operating expenses like payroll, rent, marketing, security, and utilities would make planning more predictable and operations feel steadier. That stability creates room to invest in teams, stores, and customer experience. For most retailers, this isn’t about aggressive growth. It’s about running a business that feels sustainable and balanced. With more cash retained, retailers could also pay invoices more quickly, supporting brands, manufacturers, and distributors upstream and helping the entire retail ecosystem operate more smoothly.
Cultivation
Cultivators manage high fixed costs and long production cycles. Even modest margin improvement can change what’s possible. Relief from280E would make investments in automation, energy efficiency, facility upgrades, and sustainable practices easier to support. Planning can extend further ahead, shifting the focus from short-term survival to long-term consistency. Stronger cultivation operations support more reliable supply, healthier partnerships, and better outcomes for everyone downstream. Timelier payments to suppliers would flow naturally too.
Brands and Manufacturers
Building and maintaining a strong brand requires ongoing investment in product development, marketing, sales, and quality control. Today, much of that investment is penalized under the tax code. With 280Erelief, those investments would receive normal tax treatment, freeing capital for innovation, consistency, and broader distribution. Brands could compete more on creativity, execution, and excellence rather than tax mitigation. Healthier brands also mean stronger relationships across the supply chain, faster payments to partners, and greater confidence from retailers stocking their products.
Ancillary Businesses
Ancillary businesses don’t pay 280E directly, but they feel its effects every day. When plant-touching businesses retain more cash, vendor relationships become steadier. Contracts last longer. Planning horizons extend. That stability allows service providers to invest more confidently in their teams, tools, and offerings. A healthier core industry creates a healthier ecosystem around it.
Vertically Integrated Operators
Vertically integrated operators would benefit from simpler, clearer financial planning. Costs would be easier to allocate across cultivation, manufacturing, and retail. Capital decisions could follow operational logic rather than the distortions of current tax treatment. Transparency improves, and planning becomes more straightforward. Because these operators often anchor local markets, stronger operations here tend to ripple outward across supply chains and regions.
For multi-state operators, relief from 280E would strengthen balance sheets and support more disciplined growth. Scale wouldn’t suddenly become simple, but it would become more manageable. Improved liquidity supports better coordination across markets and stronger relationships with partners and vendors nationwide.
Single-state and limited-license operators may feel the benefit most personally. Lower tax pressure supports resilience, independence, and the ability to compete without stretching too far. For many community-based businesses, that breathing room can be decisive. And when money stays local, it supports local cultivators, brands, and service providers too.
Looking Ahead
The process isn’t finished, and 280E relief alone won’t solve every challenge facing the industry. But direction matters. Relief from280E would reward disciplined operators, improve cash flow across the supply chain, and create space for reinvestment, innovation, and steadier growth. Combined with rising demand for pre-rolls, beverages, and wellness products, the year ahead feels more balanced and more promising than many recent ones.
This holiday season, we’re embracing that quiet optimism.
Peace, love, and cannabis.
From all of us at Safe Harbor Financial, we wish you apeaceful close to the year and a hopeful, steady year ahead.🎄