New bill gives tax break for cannabis dispensaries

Lawmakers in NYS decoupled U.S. law 280E, which prohibits deductions or tax credits for businesses that sell a controlled substance. This change came when Gov. Hochul signed the 2023 state budget on April 9, 2022. This allows cannabis businesses to claim business deductions at a state level. This is a much needed and welcomed change that will help cannabis entrepreneur earn a profit a lot quicker. This only applies when filing state taxes. Cannabis is still federally classified as a schedule 1 substance preventing any business from taking business deductions at a federal level.