The Department of Justice has signed an order regarding the reclassification of state-licensed medical marijuana.
Upon reclassification, authorities labeled it a less dangerous drug. This decision marks a significant shift in federal cannabis policy for decades.
Attorney General Todd Blanche reclassified legal medical marijuana from Schedule I — the most restrictive, which includes drugs such as heroin and ecstasy — to Schedule III, which includes prescription drugs like ketamine and Tylenol with codeine.
While this order does not legalize recreational marijuana use at the federal level, it does provide a huge tax break to those who legally sell marijuana for medical purposes.
Blanche wrote on »
The announcement came after President Donald Trump issued an executive order to the Justice Department to expedite the reclassification process.
For medical marijuana businesses, the immediate change has to do with taxes.
However, because marijuana was previously classified as Schedule I, the deduction of regular business expenses such as rent, salaries, or advertising by the business was prohibited under the Internal Revenue Service’s Section 280E guidelines. This raised the effective corporate tax rate to 70 percent or more.
At the same time, businesses can attract more investors, obtain loans and easily access traditional banking services.
Patients, on the other hand, will not immediately see direct changes in access or price.
