The Marijuana Opportunity Reinvestment and Expungement (MORE) Act, H.R. 3884, which would repeal cannabis prohibition, passed in the House of Representatives today with a 228-164 vote in favor of the Act.
Amongst other things, the MORE Act aims to remove marijuana as a scheduled substance under the Controlled Substances Act and, as a result, eliminate criminal penalties associated with manufacturing, dispensing, or distributing marijuana. The ACT also proposes expungement of minor marijuana convictions and disallows the denial of public benefits or security clearances associated with marijuana use.
If passed, this Act may encourage the remaining states where cannabis remains illegal to reexamine and reclassify cannabis.
What does this mean for cannabis business taxation? Cannabis businesses would be allowed to deduct all ordinary and necessary business expenses; something the IRS has refused to allow them to do.
All eyes are now on the Senate. Stay tuned.