What Marijuanas Reclassification Means for Maryland

MARYLAND. — An executive order signed by President Donald Trump could have a huge impact on the cannabis industry.

The order, titled Increasing Medical Marijuana and Cannabidiol Research, directs the U.S. attorney general to begin the process of rescheduling marijuana from a Schedule I substance to a Schedule III substance.

Some are calling it the most consequential shift in U.S. cannabis policy ever. Under the new scheduling, marijuana businesses and research companies will now be eligible for the same tax write-offs as other businesses. Anthony Darby, a partner in Maryland’s first micro-grow cannabis operation, said the rescheduling’s economic impact will be significant for cannabis businesses in Maryland and nationwide.

“I think the write-offs really create an opportunity for growth of business — allowing the business to reinvest in their people. Now that there’s a more level playing field, I think you’ll see the employees of these businesses have greater benefits and better salaries,” Darby said.

Marijuana will no longer be considered a substance with a high potential for abuse and no currently accepted medical use. Darby said the rescheduling will help medicinal cannabis research take off.

“Universities and colleges will now have access to real research in a meaningful way. A lot of the medical community’s desire is to see what cannabis actually can do. We want to know the real side effects — we want to know the real capabilities of it, and without real bona fide research, we haven’t had that.”

While the order does not legalize marijuana federally, it will allow cannabis business owners to deduct things like employee payroll and marketing.