Pervasip Corp (PVSP)

[Bjones2]

Rescheduling would eliminate Code 280E, allowing for credits or deductions!!

Were DEA to accept FDA’s current recommendation, it would have significant implications for state-legal cannabis businesses, though the rescheduling would not change the ultimate conflict between state and federal law with respect to the sale and distribution of cannabis and its derivatives.

For example, though rescheduling would not federally legalize these businesses, it would eliminate the burden of Internal Revenue Code 280E (IRC 280E), allowing state-legal cannabis businesses to take credits or deductions other than those for costs of goods sold. Currently, cannabis businesses cannot make these deductions because they are prohibited for businesses that are “trafficking in controlled substances (within the meaning of schedule I and II of the Controlled Substances Act).”