NEW YORK (WBNG) — Cannabis field experts expect President Donald Trump to sign an executive order in the coming days or weeks that would reschedule cannabis from a Schedule 1 drug to a Schedule 3 drug.
The reclassification would mean the drug will be classified as having some medical benefit, as opposed to Schedule 1, which is classified as a drug without medical use.
While the change would be significant, experts say rescheduling alone is just a single step in the right direction.
One of the immediate benefits includes the opportunity for tax write-offs for business owners, which are not currently available to organizations selling Schedule 1 drugs.
“Any licensed state dispensary or cultivator or processor can not take federal deductions on their federal tax return so they can only deduct their costs of goods sold, which results in effective tax rates for licensed cannabis operators of 50-75% which, as you can imagine, is pretty crushing for small businesses,” said Kaelan Castetter, lobbyist with Empire Cannabis Manufacturers Alliance.
If cannabis is reclassified, those in the industry said the next step is to introduce supporting legislation, such as the Safe Banking Act, which would allow cannabis companies to work with federal banking institutions.
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