“Even with the tide of public opinion and legal momentum shifting in the industry’s favor, there remains a challenge with the U.S. tax code. Due to IRS Code Section 280E, if a business is trafficking certain controlled substances, like cannabis, that business is unable to deduct business expenses on their taxes. California has taken steps to address this by signing bills that help cannabis businesses overcome this code, but this is still a prohibitive factor for cannabis companies across the U.S.”
—Jennifer Spanos, VP of Product and Vertical Strategy at CannaBusiness ERP via NCIA Member Blog: Cannabis Trends in 2022
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