Cannabusinesses Continue Search for Financial Service Providers

In this article, Jason Gross, Co-Chair of the Firm’s Cannabis Industry Practice, weighed in on banking options for cannabis businesses in New Jersey, why some intra-state banks may be more inclined to provide banking services to cannabis industry businesses than inter-state banks, why there is a disadvantage for some cannabis businesses when it comes to financing options, and Section 280E of the Internal Revenue Code, which currently blocks cannabis-related businesses from deducting typical business expenses on federal and state tax returns since marijuana is still classified as a Schedule I narcotic (New Jersey, however, decoupled the state’s corporate business tax provisions from federal rules prohibiting such deductions for cannabis businesses).