Cannabis & Craft Beer Blog

The rescheduling of certain cannabis products to Schedule III represents a meaningful shift in federal cannabis policy and offers long-awaited tax relief for portions of the industry. However, the benefits are limited in scope, leaving recreational operators subject to the continued constraints of Section 280E. Additionally, critical questions—such as the ability to obtain retroactive relief—remain unresolved. Until regulatory and IRS guidance provides greater clarity, cannabis businesses and their advisors should carefully evaluate their tax positions and compliance strategies in light of this evolving landscape.

In November 2023, Ohio voters ratified Issue 2, which legalized recreational marijuana in the Buckeye State. Issue 2 took effect a month later, on December 7, 2023, but not without a move to make some changes by the Ohio state legislature. While the Ohio Senate passed proposed changes to Issue 2, the House has yet to pass those changes. Meanwhile, the Ohio Division of Cannabis Control has released its proposed rules regarding recreational marijuana in Ohio.