GOP Lawmakers Are 'Troubled' About Marijuana Businesses Getting Tax Relief Under Trump's Rescheduling Move

GOP Lawmakers Are 'Troubled' About Marijuana Businesses Getting Tax Relief Under Trump's Rescheduling Move

A pair of Republican lawmakers sent a letter to the Trump administration’s treasury secretary on Wednesday saying they are “concerned” and “troubled” that marijuana businesses will be eligible for tax relief now that cannabis is being partially rescheduled under federal law. Moving marijuana from Schedule I of the Controlled Substances Act (CSA) to Schedule III will have “significant implications for the federal tax treatment of marijuana busine…

GOP Lawmakers Are ‘Troubled’ About Marijuana Businesses Getting Tax Relief Under Trump’s Rescheduling Move

A pair of Republican lawmakers sent a letter to the Trump administration's treasury secretary on Wednesday saying they are "concerned" and "troubled" that marijuana businesses will be eligible for tax relief now that cannabis is being partially rescheduled under federal law. Moving marijuana from Schedule I of the Controlled Substances Act (CSA) to Schedule III will have "significant implications for the federal tax treatment of marijuana busine…

Lankford Questions Potential Marijuana Tax Breaks

U.S. Senator James Lankford is raising concerns that marijuana businesses could receive federal tax breaks following the federal government’s decision to reclassify marijuana from a Schedule I to a Schedule III controlled substance. Lankford and House Budget Committee Chairman Jodey Arrington sent a letter to Treasury Secretary Scott Bessent seeking details on how the Treasury Department plans to handle potential tax deductions and credits for marijuana businesses and whether any retroactive tax relief could be offered. “We have long been concerned about the potential fiscal and societal consequences of rescheduling,” the lawmakers wrote. Under current federal law, businesses that traffic in Schedule I or Schedule II controlled substances are prohibited from claiming many ordinary business deductions and tax credits. Lankford argues that moving marijuana to Schedule III could create what he describes as a federal tax windfall for the marijuana industry. The lawmakers also questioned how the Treasury Department would determine which marijuana businesses qualify for tax relief and whether businesses tied to criminal activity could benefit. In the letter, Lankford pointed to Oklahoma’s experience with medical marijuana, noting that some state-licensed operations were later linked to black market activity, money laundering and human trafficking investigations. The lawmakers asked Treasury to provide information on the potential cost to taxpayers, the impact on federal deficits and the legal authority for granting tax relief to marijuana businesses. They requested a response by June 29. Lankford has previously introduced the No Deductions for Marijuana Businesses Act, legislation that would prevent marijuana businesses from claiming federal tax deductions or credits regardless of the drug’s classification under federal law.