Tax Guidance Ahead as Marijuana Is Reclassified to Schedule III

Federal officials say they will issue new tax guidance for the marijuana industry after the Trump administration reclassified cannabis so state-licensed medical cannabis moves to Schedule III while recreational cannabis remains Schedule I for now; the change is not a federal legalization but could allow medical cannabis businesses to deductions and credits previously blocked by IRS 280E. The guidance is expected to explain how expenses should be allocated for entities with both medical and recreational activities, with possible retrospective relief in some years, and comes as a summer hearing process considers broader rescheduling. Separately, the DOJ said rescheduling doesn’t change gun-rights considerations in a pending case, and Trump praised the medical benefits of cannabis.