Cannabis Chart Of The Week: How Much Will MSOs Save In Taxes From Elimination Of 280e?

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One of the most important results of the potential rescheduling of cannabis to Schedule 3 is eliminating 280e taxes. In previous charts of the week, we have shown that 280e significantly negatively impacts cannabis companies by reducing their internally funded growth and limiting their debt capacity. The chart explores the second-quarter tax rates of thirteen large MSOs and shows an estimate of the annualized tax savings for each company from the elimination of 280e. In most other industries, it would be common to calculate effective tax rates by dividing tax expense by pretax income. However,…

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