U.S. President Joe Biden delivers the State of the Union address to a joint session of Congress on ... [+]
President Biden's call for cannabis reform in his State of the Union Address was a milestone moment in the history of the sector. In a fiery speech, which kicked off his re-election bid, Biden not only referred to his edict to review marijuana rescheduling but also the mass pardons he has issued for thousands of people with possession convictions.
For the cannabis community, the SOTU signifies a monumental shift in federal policy and many are rejoicing.
"Rescheduling cannabis has the potential to significantly transform the landscape for all legal operators, consumers, and patients, across the country," said Matt Hawkins, founder and managing partner of cannabis investment firm Entourage Effect Capital. "For one, it will remove the 280E tax burden, which currently prohibits businesses in many states from deducting necessary business expenses on their federal tax returns, hindering many operators from reaching their full growth potential."
Matt Darin, CEO of top cannabis company Curaleaf, echoed Hawkins' sentiment that rescheduling would remove the punitive tax burden currently imposed on cannabis businesses.
"Rescheduling would contribute to further de-stigmatization of the plant, and by removing the burden of 280-E, would allow businesses to place further focus on growth and job creation," he said. "For Curaleaf, removal of 280-E could equate to savings of more than $150 million in excess tax contributions. By reducing the tax burden, cannabis businesses of all sizes will be better positioned to thrive and the true potential of this industry realized.”
Rescheduling would also pose other positive benefits for the industry, chief among them, better testing standards, noted Milan Patel, CEO and co-founder of PathogenDX, a provider of DNA-based pathogen testing technology and solutions for the cannabis, botanical, food and agricultural industries.
"Rescheduling would trigger federal regulatory agencies to apply national standards to cannabis testing, as opposed to the kaleidoscope of regulations we are currently dealing with across more than 30 states," he said. “This will allow good manufacturing practices, robust quality management systems and oversight by federal regulators to come into play throughout the whole supply chain and be taken seriously, ensuring the health and safety of patients and consumers, and setting the industry on a path for longevity and success.”
