The main reason the existing Cannabis industry supports rescheduling to III is they believe they’ll thereby be relieved of the IRS 280e burden which disallows most tax deductions. The GOP has a surprise for them:
“Representatives Seeking to Preserve 280E:
These lawmakers have introduced bills to codify Section 280E, ensuring that state-legal cannabis businesses continue to be denied federal tax deductions, even if cannabis is rescheduled.
Rep. Jodey Arrington (R-TX): Chaired the House Budget Committee and introduced H.R. 1447, the “No Deductions for Marijuana Businesses Act,” as a companion to a Senate bill.
Rep. Pete Sessions (R-TX): Cosponsored H.R. 1447 and has generally opposed cannabis reform efforts.
Sens. James Lankford (R-OK) and Pete Ricketts (R-NE): Introduced similar “No Deductions for Marijuana Businesses Act” legislation in the Senate to permanently disallow tax deductions for cannabis businesses, regardless of rescheduling efforts.”