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Leveling the Playing Field: The Case for §280E Reform and Retroactive Relief

Download NCIA’s new white paper and join the movement to protect the future of the cannabis industry.

For decades, cannabis operators have shouldered an impossible burden: paying taxes on terms no other industry faces. Section 280E strips away the ability to deduct ordinary business expenses, forcing compliant operators to pay effective tax rates that can exceed 70%. This inequity doesn’t just stifle growth—it threatens the very survival of the businesses that built the legal market.

NCIA’s latest white paper breaks down the urgency of reform and the path forward. Inside, you’ll find:

  • The origins of §280E and why today’s licensed operators were never its intended target

  • The economic impact of inflated tax burdens on growth, investment, and competition with the illicit market

  • Why retroactive relief is essential to keep early operators, equity licensees, and small businesses alive

  • NCIA’s solution: a straightforward fix that delivers fairness, stability, and opportunity to the industry

This is more than a policy paper—it’s a blueprint for survival and growth. By understanding the issue, you’re better positioned to protect your business and strengthen the regulated market.

Download your copy today and be part of the collective push to end 280E’s stranglehold on our industry.

Navigating the Future of Cannabinoid Regulation: Balancing Safety, Innovation, and Consumer Access Position Paper

The National Cannabis Industry Association (NCIA) invites industry owners, operators, regulators, and elected officials to download our latest position paper on cannabinoid regulation. With over 100 different cannabinoids found in cannabis, nuanced and thoughtful policy considerations are crucial for shaping a safe and thriving industry.

Our position paper delves into the complexities of cannabinoid production, differentiating between plant-extracted and synthesized cannabinoids. It addresses the challenges posed by the current regulatory landscape and advocates for a common-sense federal framework that emphasizes safety, consistency, and quality across all cannabis-derived products.

Key insights include:

  • The distinction between intoxicating and non-intoxicating cannabinoids.
  • The economic impact of cannabinoids, evidenced by the billions spent annually on CBD products.
  • The importance of balancing regulation to support both consumer safety and industry growth.
  • Recommendations for federal reform, including modifications to the Farm Bill and the FDCA.

NCIA’s comprehensive approach ensures that safe, regulated cannabinoid products can meet consumer demand while fostering industry innovation and protecting public health.

Download our position paper today to stay informed and contribute to the future of cannabinoid policy.

Three Things Regulators and Policymakers Can Do to Undercut Criminal Markets and Support Legal Main Street Cannabis Businesses

The simple truth is that regulated cannabis markets are not working for the vast majority of small businesses, including equity businesses.

Regulators increasingly understand that these businesses are struggling, but face the daunting challenge of knowing where to start with the many, many, many voices calling for attention. Of course, regulators are also wary of accepting a rescue plan for Main Street businesses from lobbyists exclusively paid for by the handful of large Wall Street backed businesses that can afford such slick-talking representatives.

Providing a credible voice for those Main Street businesses is at the core of NCIA’s mission.

As a result, our Policy Co-Chairs Khurshid Khoja and Michael Cooper recently traveled to the annual external stakeholders meeting of the Cannabis Regulators Association (better known as CANNRA), where they were invited back to address state and local cannabis regulators from across the country. Michael and Khurshid spoke on issues of crucial importance to the future of the industry, including the challenges facing small businesses, the successes and failures of social equity programs, the potential pitfalls of rescheduling without addressing FDA oversight in advance, and establishing a level playing field between state-licensed cannabis businesses that provide highly regulated delta-9 THC marijuana products, and unregulated actors that provide equivalent products with equally potent, psychotropic and/or chemically analogous cannabinoids derived from hemp.

Regulators were clear at the meeting that they need more credible, tangible solutions for the challenges facing these markets, and they wanted to hear directly from the nation’s oldest, largest and still most representative non-profit trade association for the regulated cannabis industry.

Today, NCIA is proud to offer the first of a series of policy papers that offer specific steps that regulators and policymakers across the nation can take to help these struggling markets.

Want to help NCIA fix the challenges you’re facing? Existing members are encouraged to contact us at Membership@thecannabisindustry.org to provide feedback or learn how you can get involved with this project. Not a member? No problem. Sign up here, and roll up your sleeves to join the fight.

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