A landmark case before the U.S. Court of Appeals for the First Circuit could fundamentally alter how cannabis businesses are taxed under federal law. Multi-state operator Verano Holdings Corp., along with Massachusetts-based Canna Provisions and Wiseacre Farm, are challenging the constitutionality of federal marijuana prohibition, with potential implications for IRC Section 280E.
The plaintiffs, represented by prominent attorney David Boies, argue that Congress has effectively abandoned its goal of eradicating marijuana through recent actions, including allowing state medical markets to operate and permitting cannabis legalization in Washington, D.C. Their central argument hinges on the Commerce Clause, asserting that Congress lacks authority to regulate purely intrastate cannabis commerce in states where it's legal...