Cannabis News

SEO for Cannabis? – How to Build Top Rankings for Your Cannabis Brands in 2025

Published

3 minutes ago

February 26, 2025

admin

cannabis seo tactics

How to Cannabis SEO in 2025 like a Pro!

Running a cannabis brand online is like trying to play Monopoly with one hand tied behind your back while the banker keeps changing the rules. Trust me, I’ve been in this game long enough to know the frustrations. You can’t advertise on Facebook, Instagram treats you like a digital pariah, and Google Ads? Forget about it. One wrong move and poof – your social media accounts vanish faster than a fresh batch of edibles at a music festival.

But here’s the kicker: while traditional advertising channels remain firmly closed to our industry, there’s one path that’s still wide open – organic search traffic. That’s right, I’m talking about SEO (Search Engine Optimization), the art and science of getting your website to show up when people search for cannabis-related content.

Now, I know what you’re thinking. “But Reg, how am I supposed to compete with giants like Marijuana.com who’ve been hoarding prime keyword real estate since before some of us were born?” Well, my friend, this is where things get interesting. You see, while the big players might have a stranglehold on broad terms like “marijuana” and “cannabis,” there’s a whole world of untapped potential in long-tail keywords and niche topics.

The challenge isn’t just about showing up in search results – it’s about showing up in front of the right people. And let’s be honest, if you’re not on the first page of Google, you might as well be selling oregano in a dark alley. The drop-off rate from page one to page two is steeper than that time I tried to explain terpenes to my grandmother.

But fear not! Today, I’m going to share something that could be a game-changer for smaller cannabis brands operating on a shoestring budget: how to leverage artificial intelligence for SEO. That’s right – we’re going to turn the tables on our corporate overlords by using their own tools against them.

So grab your favorite strain, settle in, and let’s dive into how AI can help level the playing field in the cannabis industry’s digital landscape.

Alright, before we dive into the wonderful world of AI-powered cannabis SEO, we need to get our fundamentals straight. Think of SEO as a digital game of hide and seek, except you’re trying to help Google find you while playing by an ever-changing set of rules.

Let’s start with the basics. Meta tags are like the ingredients list on your favorite edible – they tell search engines what your content is about. These include your title tags (what shows up in search results), meta descriptions (that little preview text), and headers (those H1s, H2s, etc. that break up your content). Keywords are the specific terms you want to rank for, while long-tail keywords are more specific phrases – think “best organic CBD oil for anxiety” versus just “CBD oil.”

Now, here’s where many cannabis brands get it wrong – they stuff their content with keywords like a rookie packing their first bowl. “Cannabis dispensary near me cannabis products buy cannabis cannabis deals cannabis cannabis cannabis…” You get the idea. This is what we call “black hat” SEO, and let me tell you, Google hates this more than the DEA hates fun. Pull this stunt, and your site might disappear from search results faster than your stash during a drought.

There’s a crucial difference between organic keyword ranking and paid advertising. Organic ranking is like growing your own – it takes time, patience, and proper care, but the results are worth it. Paid advertising (which isn’t available to cannabis brands anyway) is like buying from a dispensary – quick results but costly. Since we’re locked out of paid channels, organic is our best friend.

Remember this golden rule: while you’re optimizing for search engines, you’re writing for humans. Your content needs to be the digital equivalent of premium flower – high quality, well-cured, and delivering real value. Think of your website as a budtender who needs to both attract customers and keep them coming back.

Google tracks various metrics to determine your site’s quality. Time on page (how long visitors stick around) is like customer retention at a dispensary. Bounce rate (how quickly people leave) is like customers walking out without buying anything. Click-through rate (how many people click your link in search results) is like foot traffic. All these metrics tell Google whether your content is worth recommending to others.

The tricky part? Google’s algorithm is more mysterious than your dealer’s “special” strain. It uses over 200 ranking factors, and they change more often than dispensary daily specials. But one thing remains constant: quality content that serves user intent will always win in the long run.

Now that we’ve covered the fundamentals, let’s talk about crafting an SEO strategy specifically for cannabis brands. Because in this industry, we’re not just competing with other businesses – we’re fighting against decades of stigma, restrictive policies, and platforms that treat us like we’re selling contraband instead of a legal product.

Listen up, cannabis entrepreneurs – before you start throwing keywords around like confetti at a dispensary grand opening, you need to understand exactly who you’re trying to reach. And I’m not talking about some vague notion of “people who like weed.” We need to get specific.

Enter the buyer persona – your ideal customer’s digital avatar. Let me give you an example: Meet “Mindful Michelle,” a 35-year-old yoga instructor who uses cannabis to manage anxiety and enhance her meditation practice. She’s health-conscious, researches products thoroughly before buying, and values organic, sustainably produced cannabis. She shops primarily at boutique dispensaries and follows wellness influencers on Instagram. Her annual income is $65,000, and she’s willing to pay premium prices for quality products.

See what I did there? We’ve created a detailed profile that helps us understand not just who our customer is, but how they think and what they’re looking for. This brings us to user intent – the holy grail of SEO strategy.

Let’s say Michelle is looking for information about CBD for anxiety. She might start with a broad search like “CBD for anxiety,” but as she learns more, her searches become more specific. She might eventually search for “organic full-spectrum CBD oil dosage for meditation” – that’s a long-tail keyword gold mine right there. Why? Because it shows high intent (she’s looking for specific information), and there’s likely less competition for this precise phrase than broader terms.

When crafting content around these keywords, you’ll want to follow some best practices:

Use your target keyword in the title (naturally, not forced)

Include it in the first 50 words of your content

Sprinkle related terms throughout (think “anxiety relief,” “mindfulness,” “natural remedy”)

Include outbound links to reputable sources (like scientific studies)

Create internal links to your other relevant content

Use header tags (H1, H2, H3) to structure your content logically

But here’s the thing about content length – Google loves comprehensive content that thoroughly addresses user questions. We’re talking 1,500+ words for main pages and blog posts. “But Reg,” you might say, “isn’t that a bit much?” Not if you’re actually solving problems and providing value.

Think about it this way: if Michelle lands on your page about CBD and anxiety, and you’ve got a thorough, well-researched article that addresses dosing, different consumption methods, potential interactions, and the science behind how CBD affects anxiety – she’s likely to stick around. More importantly, she’s likely to bookmark your site and come back when she’s ready to make a purchase.

This is how you build trust in the cannabis space – by becoming a reliable source of information first, and a seller second. Remember, in an industry where traditional advertising is restricted, your content needs to work twice as hard.

Now, I know what you’re thinking – “Reg, this sounds like a lot of work!” And you’re right. Creating comprehensive, SEO-optimized content that actually provides value is no small task. But that’s where our AI friends come in handy. Let me show you how to make this process a whole lot easier…

Alright, my cannabis-loving friends, it’s time to unleash the robots! Not the terrifying kind that might take over the world, but the helpful ones that’ll make your SEO efforts smoother than a well-cured top shelf bud.

Let me tell you, creating high-quality, media-rich content used to be harder than explaining terpenes to your grandma. You’d need a writer, photographer, graphic designer, video editor – the works. But now? We’ve got an entire digital army at our disposal, and it’s surprisingly affordable.

Here’s my tried-and-true workflow that’ll have you pumping out content faster than a hydroponic setup on steroids:

First stop: Perplexity.AI. This bad boy is like having a research assistant who never sleeps and actually remembers everything they read. Feed it your topic, and it’ll spit out relevant scientific studies, market research, and questions you wouldn’t have thought to ask. Want to write about CBD and sleep? It’ll dig up everything from clinical trials to user demographics.

Next, slide into your favorite AI chatbot – whether that’s ChatGPT, Claude, or Grok. If you’re feeling fancy, hit up Openrouter and sample them all like you’re at a cannabis cup. These tools will help you craft content that’s more engaging than your local budtender’s strain recommendations. (I could write a whole article just on prompt engineering, but that’s a story for another day.)

Now, here’s where it gets fun. Need images? Leonardo.ai or MidJourney are your new best friends. Want a stunning visual of cannabinoids interacting with neural receptors? Or maybe a chill lifestyle shot of someone enjoying their evening routine? These AI tools can create custom, copyright-free images that look better than most stock photos. Pro tip: Have your AI writing assistant generate image prompts based on your article – it’s like having a creative director in your pocket.

But why stop at text and images? Let’s get audio in the mix with Elevenlabs. Turn your article into a podcast-style recording that people can listen to during their commute. Then, take those AI-generated images, throw them into Capcut with your audio, and boom – you’ve got a video ready for YouTube. That’s three different ways for people to consume your content, and three different chances to keep them engaged.

Here’s the real kicker – you can “spin” your article (that’s industry speak for rewriting while maintaining the core message) a few times and publish it on platforms like Substack, Medium, or Reddit. Link these back to your original piece, and you’re building a web of high-authority backlinks that’ll make Google happier than a kid in a candy store.

The best part? This entire process takes about 2-3 hours once you get the hang of it. You’re creating a content ecosystem that provides value across multiple platforms and formats, all while building those precious SEO signals that Google loves.

Remember though, always keep your target keywords in mind throughout this process. Have your AI assistants strategically place them in your content, headers, and meta descriptions. It’s like leaving a trail of breadcrumbs that leads straight to your website.

And this, my friends, is just scratching the surface. The robots are here to help, and they’re making premium content creation more accessible than ever. Time to embrace the future and let AI help you climb those search rankings!

What I’ve shared here is just the tip of the cannabis cola, if you will. It’s like I’ve taught you how to pack a bowl, but there’s still so much to learn about the whole grow operation. However, these fundamentals should be enough to get you started on your SEO journey.

Here’s the deal: aim to post 2-3 solid pieces of content each week. And I mean solid – not that schwag content that’s just recycled from other sites. We’re talking premium, home-grown content that your users will actually want to consume. Share it across your social platforms (where allowed, of course – we all know how touchy these platforms can be about cannabis content), and weave your products or services into the narrative naturally. Nobody likes a pushy salesperson, but everyone appreciates genuine expertise and helpful advice.

Think of it like growing a healthy cannabis plant – you need consistent care, the right nutrients, and most importantly, patience. Keep feeding your audience valuable content, and they’ll reward you with engagement. When Google sees users spending time on your site, sharing your content, and coming back for more, it’s like getting a five-star review from the most important dispensary rating system in the digital world.

Remember, success in cannabis SEO isn’t about gaming the system – it’s about actually being useful to your target audience. Solve their problems, answer their questions, and become their trusted source of information. Do this consistently, and Google will naturally want to recommend you to others searching for similar content.

And here’s a final nugget of wisdom: the cannabis industry is constantly evolving, and so should your SEO strategy. Stay curious, keep testing new approaches, and don’t be afraid to experiment with different content formats and topics.

Now get out there and start creating some killer content. Your future customers are out there searching for you – it’s time to help them find you.

Good luck, and may your rankings be high and your bounce rates low!

https://www.reddit.com/r/weedbiz/comments/1ig1nwq/why_are_most

_cannabis_seo_agencies_scams_anyone/

CANNABIS SEO GOES HIGH TECH, READ ON…

CANNABIS DOMAIN PRICES GET PRICES FOR CBD AND EXACT MATCH!

Source link

Cannabis News

Pot for Potholes? – Michigan Plans to Let Cannabis Tax Revenue Fix the Growing Pothole Problem in the State

Published

24 hours ago

February 25, 2025

admin

pot for potholes

In recent months, Michigan has found itself at the intersection of two significant issues: the deteriorating state of its roads and the burgeoning cannabis industry. Governor Gretchen Whitmer’s ambitious plan to allocate funds from marijuana taxes to repair potholes has ignited a lively debate within both the political and cannabis communities. As the state grapples with aging infrastructure, the proposal raises questions about funding priorities, industry sustainability, and consumer impact. This article delves into the details of the plan, its implications for Michigan’s cannabis sector, and the broader conversation it has sparked.

The State of Michigan’s Roads

Michigan is notorious for its rough roads. According to a report from the American Society of Civil Engineers, nearly 40% of Michigan’s roads are in poor condition, leading to increased vehicle damage and safety concerns for drivers. The state has long struggled with funding for road repairs, often relying on gas taxes and federal funds that have proven insufficient to address the growing backlog of maintenance needs.

The Economic Impact of Poor Infrastructure

The economic ramifications of poor road conditions are profound. Businesses face higher transportation costs due to vehicle wear and tear, while residents experience longer commute times and reduced quality of life. Additionally, inadequate infrastructure can deter new businesses from setting up shop in Michigan, further stifling economic growth.

Governor Whitmer’s Proposal

In response to these pressing issues, Governor Whitmer announced a comprehensive $3 billion plan aimed at revitalizing Michigan’s roads. The proposal focuses on innovative funding strategies, including a significant increase in taxes on marijuana products.

Funding Breakdown

The proposed funding plan includes:

$1.7 billion from corporate taxes and technology companies.

$1.2 billion from increased gas taxes.

$500 million cut from unspecified spending areas.

A 32% wholesale tax on marijuana products projected to generate $470 million annually.

This ambitious approach aims not only to repair potholes but also to create a more sustainable funding model for ongoing infrastructure needs.

The Role of Cannabis Tax Revenue

Michigan legalized recreational marijuana in 2018, leading to a rapid expansion of the cannabis market. With over 400 licensed dispensaries and a thriving cultivation sector, tax revenue from cannabis sales has become a significant source of income for the state. Currently, marijuana products are subject to a 10% excise tax and a 6% sales tax; however, Governor Whitmer’s proposal seeks to elevate this wholesale tax substantially.

Reactions from the Cannabis Community

The announcement has elicited mixed reactions from various stakeholders within Michigan’s cannabis community. While some applaud the idea of using cannabis tax revenue for public goods like road repairs, others express concern about the potential negative consequences for the industry.

Support for the Initiative

Many proponents argue that using cannabis tax revenue for infrastructure improvements is a logical step forward. They contend that as one of the most lucrative sectors in Michigan’s economy, the cannabis industry should contribute significantly to public services.

Public Good Argument: Advocates argue that better roads benefit everyone, including those in the cannabis industry who rely on transportation for distribution and customer access.

Community Investment: Some believe that investing in infrastructure will enhance overall community well-being and support local businesses.

Concerns About Increased Taxes

On the other hand, several dispensary owners and industry advocates express serious concerns about the proposed tax increase:

Impact on Consumers: Many fear that raising taxes on marijuana products will lead to higher prices for consumers. One dispensary owner noted that some products could see price increases close to 90%, making legal cannabis less competitive against black market alternatives.

Market Viability: There is apprehension that higher prices could drive consumers back into the black market, undermining years of progress made in legalizing and regulating cannabis sales.

Small Business Struggles: Smaller dispensaries may struggle more than larger corporations to absorb increased costs, potentially leading to business closures and reduced competition in the market.

Broader Economic Implications

The intersection of road funding and cannabis taxation raises broader questions about economic policy in Michigan. As states across the U.S. grapple with similar challenges—balancing public needs with industry growth—Michigan’s approach may serve as a case study for others.

Balancing Act: Public Needs vs. Industry Growth

Governments must find ways to fund essential services while fostering economic growth in emerging industries like cannabis. The challenge lies in ensuring that taxation does not stifle innovation or drive consumers away from legal markets.

Potential Alternatives

Some industry representatives have called for alternative funding solutions that do not rely solely on increased taxation:

Reallocation of Existing Funds: Advocates suggest examining current budget allocations to identify areas where funds can be redirected toward road repairs without imposing new taxes.

Public-Private Partnerships: Collaborations between government entities and private companies could provide innovative solutions for funding infrastructure projects without burdening taxpayers or industries.

Incentives for Local Businesses: Offering incentives or tax breaks for local businesses involved in road repair projects could stimulate job creation while addressing infrastructure needs.

Political Landscape

Governor Whitmer’s proposal has also ignited discussions within Michigan’s political landscape. Republican lawmakers have voiced opposition to increasing taxes on marijuana products as part of road funding strategies.

Republican Counterproposal

In response to Whitmer’s plan, Republican lawmakers have proposed an alternative $3 billion road funding strategy that does not rely on tax increases. This plan emphasizes reallocating existing funds rather than imposing new taxes on any industry.

Bipartisan Cooperation Challenges

While both parties agree on the need for better roads, finding common ground on how to fund these improvements remains elusive. The debate over using marijuana tax revenue highlights broader ideological differences regarding taxation and government spending priorities.

The Future of Cannabis Regulation in Michigan

As discussions around Governor Whitmer’s proposal continue, they underscore broader trends in cannabis regulation across the United States. States that have legalized marijuana are increasingly looking at how best to leverage tax revenue generated from this burgeoning industry.

Lessons Learned from Other States

States like Colorado and California have faced similar challenges regarding how best to utilize cannabis tax revenue. In Colorado, funds have been allocated toward education initiatives and public health programs; however, debates continue over how effectively these funds are being utilized.

Ensuring Transparency and Accountability

For Michigan’s approach to be successful, it will be essential to establish transparency and accountability measures regarding how cannabis tax revenues are spent. Ensuring that funds are directed toward meaningful infrastructure improvements will be critical in maintaining public support for both road repairs and continued investment in the cannabis industry.

Conclusion

Governor Gretchen Whitmer’s plan to fix potholes using marijuana tax revenue has sparked an important conversation about infrastructure funding and its relationship with emerging industries like cannabis. While many see this as an innovative solution to longstanding issues with road conditions in Michigan, others raise valid concerns about potential negative impacts on consumers and small businesses within the cannabis sector.

As discussions evolve, it will be crucial for stakeholders from government officials to industry representatives to engage collaboratively in seeking solutions that benefit both public infrastructure needs and economic growth within the cannabis community. The outcome of this debate may not only shape Michigan’s future but also serve as a model for other states navigating similar challenges as they balance public service needs with burgeoning industries’ growth potential.

MICHIGAN GOES CANNABIS GREEN, READ ON…

MICHIGAN GOES TO $122 FOR AN OUNCE OF CANNABIS? SAY WHAT?

Source link

Cannabis News

Benefits and Uses of THCA Flower

Published

1 day ago

February 25, 2025

admin

cannabis plant leaf — Courtesy: Shutterstock

People in the cannabis market are now focusing on several different cannabis compounds to develop new marijuana-based products. THCA is a well-known compound that people now embrace. People receive different benefits from using the chemical compound Tetrahydrocannabinolic acid THCA. This article will outline the benefits and uses of THCA Flower.

What is THCA Flower?

THCA flower is raw cannabis with high levels of THCA. The product does not present psychoactive effective can be consumed raw. However, when it is exposed to heat it can present some side effects since it converts to THC. The idea shows that smoking it can present some THC effects. A lot of people look for thca flower clearance deals to experience its benefits without spending more money. Raw cannabis products like THCA flower are widely known due to its different uses.

Benefits of THCA Flower

Anti-Inflammatory Properties

THCA is widely used for its ability in reducing inflammation. Therefore, if you often suffering from inflammatory conditions, then including THCA in your routine can boost your health outcomes. This can reduce the risks you are exposed to.

Several studies show that THCA interacts with the body’s endocannabinoid system which regulates several physiological processes. This makes it a natural option for managing conditions like arthritis and muscle soreness.

THCA have neuroprotective properties, making it an ideal option for people that want to seek support brain health. The idea shows that THCA can help you manage neurodegenerative conditions like Alzheimer.

Including THCA flower in your routine can help promote long-term cognitive wellness, helping you stay focused. For this reason, if you need to explore its benefits and affordability, then THCA Flower Clearance is an ideal choice for you.

Uses of THCA Flower

You can enjoy THCA flower by consuming it raw. You can also choose to add it in smoothies, juices, or salad for a nutrient-packed addition to your diet. Consuming the product raw help preserves its compound, allowing you to enjoy the required benefits without incurring any psychoactive implications.

If you are a wellness enthusiast, then this product is the best option to include in your daily life. Its naturalness complements different recipes, which can be beneficial, especially if you love herbal meals.

Furthermore, THCA flows can be used to make homemade tropical products like cream or salved. These products are used to soothe pain and inflammation when applied directly.

Experimenting different preparations can help you create a customized solution that addresses your specific needs. Combining THCA with natural ingredients like coconut oil or essential oils can increase the soothing effect.

Therefore, a THCA flower is a popular product in the cannabis industry due to its increased benefits and uses. It contains anti-inflammatory and neuroprotective properties, which present potential health benefits for people with different needs. Examining these products through THCA Flower Clearance options can offer you ideal insights into its advantages without breaking the banks. If you are new to cannabis, then thca flower clearance can be the best option to choose.

Source link

Cannabis News

280E Tax Code Restrictions on Cannabis Companies Forever?- GOP Senators File Bill to Keep 280E No Matter What Happnes to Weed

Published

4 days ago

February 22, 2025

admin

280e tax codes forever on weed

In a move that has sparked significant controversy within the cannabis industry and among reform advocates, Republican Senators James Lankford (Oklahoma) and Pete Ricketts (Nebraska) have introduced a bill that seeks to permanently enforce the tax penalties imposed on cannabis businesses under Section 280E of the Internal Revenue Code. The legislation, titled the “No Deductions for Marijuana Businesses Act,” was filed on February 7, 2025, and aims to ensure that marijuana operators remain unable to deduct standard business expenses, even if marijuana is rescheduled under federal law.

The proposal comes at a time when cannabis reform advocates have been pushing for fairer tax policies and greater federal recognition of the legal cannabis industry. However, this bill represents a significant obstacle to those efforts, as it would effectively maintain one of the most burdensome financial restrictions on cannabis businesses indefinitely. This article explores the implications of the proposed legislation, its potential impact on the cannabis industry, and the broader context of federal marijuana policy reform.

What Is Section 280E?

Section 280E of the Internal Revenue Code is a decades-old provision that has long been a thorn in the side of legal cannabis operators. Enacted in 1982 during the height of the War on Drugs, Section 280E prevents businesses involved in trafficking Schedule I or II controlled substances from deducting ordinary and necessary business expenses from their taxable income. This includes expenses such as rent, payroll, utilities, advertising, and other operational costs.

The provision was originally designed to target illegal drug dealers but has since been applied to state-legal cannabis businesses due to marijuana’s classification as a Schedule I drug under the Controlled Substances Act (CSA). As a result, cannabis operators are subject to significantly higher effective tax rates compared to businesses in other industries. In some cases, these tax rates can reach as high as 70% to 90%, leaving many cannabis companies struggling to stay afloat despite generating substantial revenue.

For years, cannabis advocates have argued that Section 280E is outdated and unfairly penalizes businesses that operate legally under state laws. They contend that removing or modifying this provision would allow cannabis companies to reinvest in their operations, create jobs, and contribute more effectively to local economies.

The “No Deductions for Marijuana Businesses Act”

The bill introduced by Senators Lankford and Ricketts seeks to cement Section 280E’s application to cannabis businesses permanently. Specifically, it would ensure that even if marijuana is rescheduled from its current classification as a Schedule I drug—something reform advocates have been pushing for—cannabis operators would still be barred from deducting standard business expenses.

In a statement accompanying the bill’s introduction, Senator Lankford said:

”Marijuana doesn’t make our families stronger, our streets safer, or our workplaces more productive. Businesses that sell federally illegal drugs—including marijuana businesses—shouldn’t get federal tax breaks.”

Senator Ricketts echoed this sentiment, emphasizing his opposition to what he described as efforts to “normalize” marijuana use:

”We cannot allow federal tax policy to subsidize an industry that poses serious risks to public health and safety.”

The bill reflects a broader ideological stance among certain Republican lawmakers who remain staunchly opposed to cannabis legalization at both the state and federal levels. By targeting one of the key financial incentives for rescheduling or descheduling marijuana—namely, relief from Section 280E’s tax penalties—the legislation seeks to undermine efforts to legitimize the industry.

Implications for Cannabis Businesses

If enacted, the “No Deductions for Marijuana Businesses Act” would deal a significant blow to cannabis operators already grappling with high taxes and regulatory challenges. Many in the industry were hopeful that rescheduling marijuana—such as moving it from Schedule I to Schedule III under the CSA—would alleviate some of these burdens by rendering Section 280E inapplicable. However, this bill would ensure that those hopes are dashed.

Financial Strain on Operators

The inability to deduct ordinary business expenses means that cannabis companies are taxed on their gross income rather than their net income. This creates an unsustainable financial model for many operators, particularly small and medium-sized businesses that lack access to traditional banking services or capital due to federal prohibition.

For example:

A dispensary with $1 million in revenue might incur $800,000 in operating expenses. Under normal tax rules, it would pay taxes on $200,000 in profit. However, because of Section 280E, it must pay taxes on the full $1 million in revenue. With effective tax rates often exceeding 70%, this leaves little room for reinvestment or growth—and in some cases leads to insolvency.

By keeping these restrictions permanently intact, Lankford and Ricketts’ bill could exacerbate existing disparities within the industry. Larger multi-state operators (MSOs) with significant resources may be able to weather these challenges better than smaller independent businesses or social equity applicants seeking entry into the market.

Impact on State-Legal Markets

The financial strain imposed by Section 280E also has broader implications for state-legal cannabis markets. High taxes and operating costs make it difficult for legal businesses to compete with illicit operators who do not face similar financial constraints. This undermines one of the primary goals of legalization: reducing the size of the illegal market.

According to Beau Whitney, Chief Economist at Whitney Economics:

”Maintaining 280E restrictions will only perpetuate an uneven playing field where illicit operators thrive while legal businesses struggle.”

States that rely on tax revenue from legal cannabis sales could also feel the impact. If legal operators are forced out of business due to unsustainable tax policies, states could see declines in revenue earmarked for education, healthcare, infrastructure projects, and other public services funded by cannabis taxes.

Opposition From Advocates and Industry Leaders

The introduction of this bill has drawn sharp criticism from cannabis advocates and industry leaders who view it as a regressive step that ignores both economic realities and shifting public opinion on marijuana legalization.

Advocacy Groups Speak Out

Organizations such as the National Cannabis Industry Association (NCIA) and Marijuana Policy Project (MPP) have condemned Lankford and Ricketts’ proposal. In a statement released shortly after the bill’s introduction, NCIA Executive Director Aaron Smith said:

”This legislation represents an outdated approach rooted in stigma rather than science or common sense. It unfairly targets an industry that Is creating jobs, generating tax revenue, and providing safe access for millions of Americans.”

Similarly, MPP’s Deputy Director Matthew Schweich argued:

”Punitive tax policies like 280E only serve to bolster the illicit market while undermining legitimate businesses trying to operate within state laws.”

Industry Leaders React

Cannabis business owners have also voiced their concerns about how this legislation could impact their operations. Many argue that fair tax treatment is essential not only for their survival but also for fostering innovation and competition within the industry.

Kim Rivers, CEO of Trulieve Cannabis Corp., stated: ”The legal cannabis industry has proven its value time and again through job creation and community investment. Policies like this threaten all of that progress.”

Broader Context: Federal Rescheduling Efforts

The timing of this bill is particularly notable given ongoing discussions about rescheduling marijuana at the federal level. In late 2023, President Joe Biden directed federal agencies—including the Department of Health and Human Services (HHS) and Drug Enforcement Administration (DEA)—to review marijuana’s classification under the CSA. HHS subsequently recommended moving marijuana from Schedule I (the most restrictive category) to Schedule III.

Rescheduling marijuana would represent a significant shift in federal policy by acknowledging its medical value while reducing some regulatory barriers. However, it would not legalize marijuana outright or address issues like banking access or interstate commerce.

Advocates had hoped that rescheduling would also eliminate Section 280E’s application to cannabis businesses—a key incentive for reform efforts. By introducing legislation specifically designed to preserve these tax penalties regardless of rescheduling outcomes, Lankford and Ricketts are effectively preempting one of the potential benefits of reform.

Conclusion

The “No Deductions for Marijuana Businesses Act” introduced by Senators James Lankford and Pete Ricketts represents a significant challenge for advocates seeking fairer treatment for legal cannabis operators under federal law. By aiming to keep Section 280E’s tax penalties permanently intact—even if marijuana is rescheduled—the bill threatens to undermine progress toward legitimizing an industry that has already faced numerous obstacles. While proponents argue that such measures are necessary to prevent “subsidizing” an industry they oppose on moral grounds, critics contend that maintaining punitive tax policies will only harm legitimate businesses while empowering illicit markets.

As debates over federal marijuana policy continue—including discussions around rescheduling—it remains crucial for stakeholders within the cannabis industry to mobilize against regressive measures like this one. The future of America’s rapidly evolving relationship with cannabis hangs in the balance—and decisions made now will shape its trajectory for years to come.