Lawmakers press IRS for fast rules as cannabis tax landscape shifts

A group of U.S. House lawmakers is urging the Treasury Department and the IRS to quickly publish guidance for state-legal marijuana businesses following the federal government’s recent move to reclassify certain cannabis products. The push, led by Reps. Steven Horsford (NV) and Steve Cohen (TN), argues that with rescheduling underway, longstanding limits on deductions under Internal Revenue Code Section 280E will no longer apply to qualifying medical cannabis operators—and businesses need clear instructions for the 2026 filing season. The appeal was first reported by Marijuana Moment and flagged by Cannabis Law Report.

What changed in April—and what hasn’t

On April 28, 2026, a Final Order from Acting Attorney General Todd Blanche took effect, placing two categories of marijuana in Schedule III of the Controlled Substances Act: FDA‑approved drug products containing marijuana and products handled under a qualifying state medical marijuana license. Recreational (adult‑use) cannabis remains Schedule I for now. A formal hearing on broader rescheduling is slated to begin June 29, 2026.

What the IRS has signaled so far

Treasury and the IRS announced they will issue guidance addressing the tax effects of DOJ’s Final Order. Among the items they previewed: (1) 280E will generally no longer bar deductions and credits for businesses that, as a result of the Final Order, are no longer trafficking in Schedule I or II substances; (2) for mixed operations (e.g., dual medical/adult‑use licenses), guidance is expected on apportioning expenses; and (3) a transition rule indicating rescheduling will be considered to first apply for the taxpayer’s full taxable year that includes the Final Order’s effective date, but only for activities no longer involving Schedule I or II substances. Timing for the final guidance was not specified.

Why this matters to trucking

For carriers serving the in‑state medical cannabis supply chain—cultivators, manufacturers, labs, and dispensaries—the end of 280E for qualifying medical activity could quickly improve customers’ cash flow. That can influence payment terms, contract renewals, and capital spending on temperature‑controlled equipment, secure storage, or dedicated last‑mile services. But expect complexity: dual‑license clients may need to split costs between medical (Schedule III) and adult‑use (still Schedule I) operations until any broader DEA action is finalized.

Operational guardrails that haven’t moved

DOT drug testing remains unchanged. Marijuana stays on the federal testing panel for safety‑sensitive transportation workers, and a THC‑positive test still triggers removal from duty and Clearinghouse reporting. Do not alter company policies or driver communications on this point.
Strict federal controls continue. The DOJ order created an expedited DEA registration pathway for state medical marijuana licensees and kept tight import/export permit requirements. Carriers should expect new registration numbers and chain‑of‑custody expectations on client paperwork, but this is not a green light for handling unlicensed or adult‑use product.
Banking progress will be uneven. Rescheduling doesn’t automatically change Bank Secrecy Act/FinCEN expectations; many institutions will remain cautious. Verify your cannabis customers’ payment capabilities and avoid building cash‑intensive collection routines into routes.

Action items for fleets and owner‑operators

Re‑underwrite cannabis accounts. Ask medical clients how they will separate Schedule III vs. Schedule I activity, and request updated W‑9s, licensing, and (if applicable) DEA registration details for your compliance files.
Update invoicing and terms. With 280E relief on qualifying medical activity and anticipated IRS guidance on apportionment, some customers may seek new net terms or volume commitments. Build in surcharge language for security or temperature‑control costs while the rules settle.
Keep driver messaging tight. Reiterate that rescheduling does not change DOT drug testing, and that state medical authorization is not a defense after a positive. Document acknowledgement from company drivers and leased‑on O/Os.
Watch the calendar. The broader rescheduling hearing starts June 29, 2026; outcomes there will determine if adult‑use operations eventually see 280E relief—potentially reshaping pricing, volumes, and payment risk in cannabis freight.

The bottom line: Washington has cracked open the door for medical cannabis businesses to operate under more conventional tax rules, but the IRS still needs to translate April’s rescheduling order into day‑to‑day tax instructions. Until that arrives—and unless or until adult‑use cannabis is also reclassified—trucking companies should expect a patchwork environment: stronger medical clients, unchanged DOT testing, and elevated documentation demands around every cannabis‑touching load.

Sources Consulted: Cannabis Law Report; Marijuana Moment; U.S. Department of the Treasury; Federal Register; Office of Congressman Steven Horsford; U.S. Department of Transportation; JURIST.

Need to file your Form 2290?

Join thousands of owner-operators and carriers who trust HeavyTax.com for fast and easy HVUT e-filing.