Aaron Smith, CEO of the National Cannabis Industry Association (NCIA), joins Guillermo to discuss the impact of potential federal policy changes on the cannabis industry, focusing on the benefits of rescheduling cannabis from schedule 1 to schedule 3. They address the tax challenges under the current classification and the importance of FDA guidance for state-legal cannabis businesses. Aaron calls for industry engagement in policymaking, including lobbying for retroactive tax relief for payments made under tax code 280E.
“One of the biggest issues facing the industry is IRS tax code 280E, which prevents businesses from taking ordinary business deductions on our tax on federal taxes. Businesses in the industry are essentially paying on their gross receipts and facing double or triple the effective tax rate of other businesses. This is something we’ve been fighting in Congress for a long time, and it has been a real uphill battle.”
– Aaron Smith
Listen and Learn:
- Potential impact of federal policy changes on the cannabis industry
- Importance of rescheduling cannabis from schedule one to schedule three
- Alleviating tax burdens for cannabis businesses
- Providing opportunities for small and independent businesses
- Advocacy for retroactive relief for tax issues related to 280E
- Engagement with policymakers to shape future cannabis regulations
Episode Resources:
- Book a free consultation with Guillermo: https://anderscpa.com/virtual-cfo-cannabis/
- If you’d like to be a guest on the show: cannabizsuccessshow@anderscpa.com
- https://thecannabisindustry.org/
Looking to accelerate the growth of your Cannabis business? Learn more about our Virtual CFO services for Cannabis businesses.
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