🇺🇸 Medical Cannabis Reclassification Could Deliver Major Tax Relief and Reshape the U.S. Industry

The federal reclassification of state‑licensed medical cannabis to Schedule III is expected to significantly reduce tax burdens for medical marijuana businesses by exempting them from IRS Code 280E, which had previously prevented deductions for ordinary expenses like rent and payroll, often resulting in effective tax rates near 70%. Industry analysts say the change could cut some companies’ federal tax bills by as much as half and potentially unlock retroactive relief, providing a financial boost to operators that collectively owed more than $2 billion in federal cannabis‑related taxes in 2025. (HempGazette)

⚕️ Tennessee Governor Blocks Automatic Medical Marijuana Review Despite Federal Rescheduling

Tennessee Gov. Bill Lee has signed legislation that prevents an automatic state review that could have led to medical marijuana legalization following the federal rescheduling of cannabis, effectively ensuring that any change to state marijuana law must come directly from the legislature. Under the new law, even if marijuana is moved or removed from the federal list of controlled substances, Tennessee’s health and mental health commissioners are prohibited from rescheduling cannabis unless the General Assembly first establishes a regulatory framework and expressly authorizes such action. (MarijuanaMoment)

🚒 Maryland Governor Protects Firefighters and Rescue Workers Who Use Medical Marijuana Off Duty

Maryland Gov. Wes Moore has signed legislation protecting firefighters, paramedics, EMTs, and other rescue workers from being disciplined, fired, or otherwise punished for legally using medical marijuana while off duty, as long as they are registered patients and not impaired on the job. The new law bars state and local employers from penalizing workers solely for testing positive for cannabis metabolites, while preserving employers’ authority to enforce zero‑tolerance policies for on‑duty impairment and requiring any suspected impairment to be reported to state regulators. Lawmakers said the measure responds to chronic pain, injuries, and stress‑related conditions common among first responders and aims to allow medical cannabis as an alternative treatment without compromising public safety.

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📜 DEA Schedule III Registration Raises Alarm by Asking Cannabis Businesses to Admit to Drug Trafficking

Following the federal reclassification of state‑licensed medical marijuana to Schedule III, the DEA has opened an expedited registration process that requires cannabis businesses to disclose past activities that were federally illegal, prompting concern that applicants are effectively being asked to admit to drug trafficking under prior law, with false statements carrying potential criminal penalties. While registration is necessary for businesses to access Schedule III benefits such as relief from IRS Code 280E and formal federal recognition, industry attorneys and operators warn the application language creates legal risk by forcing admissions about conduct that occurred while cannabis was still classified as Schedule I. State‑licensed medical cannabis businesses have 60 days to apply for expedited review, putting many in a difficult position as they weigh tax and regulatory benefits against lingering distrust of federal enforcement after decades of prohibition. (Cannabis Business Times)

🗓️ Continued Cannabis News & Events

• Reclassification of marijuana opens doors for much‑needed medical research into the benefits and risks of the drug

• North Carolina Could Legalize Medical Marijuana Now That It’s Been Federally Rescheduled, Senate Leader Says

• Cannabis Vaping: Safer Than Smoking…or Just Newer?

• Legalization’s blind spot: youth exposure to stronger cannabis