Cannabis Tax Credit Analysis
280E disallows credits for the plant-touching business. That does not always mean none exist anywhere in your structure.
280E disallows credits as well as deductions for the plant-touching business, which leads many operators to assume no credits are available anywhere in their structure. That is not always true — particularly for ancillary entities, non-plant-touching operations, and certain state-level programs.
What's Included
Why This Differs In Cannabis
The analysis has to be entity-by-entity rather than business-wide. A management or real estate entity outside the plant-touching license may access credits the licensed operation cannot. Whether that structure is legitimate — and defensible — is a separate question we will answer honestly.
Entity by entity, not business-wide.
Why MCA
We have served licensed cannabis operators since 2015 — one of the first firms in the country to build a practice around it — and we have worked with more than 100 operators across 30+ states. Cannabis is all we do, and all we have ever done.
Frequently Asked
Are any credits available to a plant-touching business?
Federally, 280E disallows them. State-level treatment varies, and non-plant-touching entities in your structure may qualify.
Is this worth doing for a single dispensary?
Usually as part of a broader structure review rather than standalone.
Do you handle the filing?
Yes, where credits are identified and supportable.