Schedule III Classification of Cannabis: Banking, Capital, and Tax Planning for Medical Cannabis Businesses

This CLE course will examine banking issues and capital access for medical marijuana businesses after the April 2026 Schedule III reclassification of marijuana for medical purposes. The panel will highlight the tax implications of rescheduling, including Section 280E deductions, One Big Beautiful Bill Act (OBBBA) opportunities, and other tax-planning considerations. The faculty will help attendees prepare for the business opportunities ahead, spotlighting pivot points from additional rulemaking efforts, judicial challenges, and other developments.

The U.S. cannabis market is expected to reach USD 40.41 billion by 2034. Growth drivers include expanding legalization, broader acceptance, and increased investment in cultivation and retail operations.

In December 2025, the President signed an executive order starting the process of rescheduling marijuana under the Controlled Substances Act (CSA). Pursuant to that order, on Apr. 23, 2026, the Department of Justice (DOJ) and Drug Enforcement Agency (DEA) issued an order placing FDA-approved marijuana products and cannabis products regulated by a state medical marijuana license in Schedule III of the CSA. They also announced an expedited administrative hearing process to consider rescheduling marijuana from Schedule I to Schedule III. A new hearing beginning June 29 will "evaluate broader changes to marijuana's status under federal law."

The reclassification has significant financial implications for medical cannabis businesses, affecting banking, access to capital, and tax liabilities. It may also change how financial institutions assess the risks of serving these businesses, potentially expanding banking services (including lending) to improve cash flow and support growth. In addition, the reclassification ends the punitive limitations of Internal Revenue Code (IRC) Section 280E, allowing medicinal businesses to deduct expenses for federal tax purposes. Finally, Schedule III status signals federal recognition of accepted medical uses, which may expand research opportunities and draw attention from institutional investors and financial markets.

During this webcast, our faculty will review state and federal legal frameworks after the 2026 DOJ and DEA order and how banking services are likely to change in response. Discussion will include how financial institutions should assess policies and update practices to serve medical cannabis businesses while maintaining existing compliance obligations, including requirements for recreational cannabis and blended businesses. The panel will also address preparing for IRC Sec. 280E deductions, the viability of retroactive relief, the potential qualified business income (QBI) deduction, and other tax benefits under the OBBBA.

Listen as our authoritative panel summarizes the legal and financial impacts of the reclassification of marijuana for medical treatment, while imparting important operational considerations for cannabis-related businesses (CRBs) and the financial institutions serving them.