On April 23, 2026, the U.S. Justice Dept. and Drug Enforcement Administration (DEA) ordered state-licensed medical cannabis and FDA-approved marijuana products to be moved from Schedule I to a less-restricted Schedule III status (https://bit.ly/48hV9n0). This reclassification doesn’t legalize cannabis on the federal level, but it’s expected to have significant tax benefits for some cannabis businesses. Eligible companies may want to start segregating deductible costs and take other steps to minimize taxes. The DEA will debate whether to extend Schedule III status to recreational marijuana in a June 29 hearing. Contact us for tax advice.
