How the Biden Marijuana Shift Could Impact Taxes

A pending Biden administration marijuana rule change could help some cannabis businesses lower their taxes.

marijuana plant with money symbols and chart in background
(Image credit: Getty Images)

In a significant shift in United States drug policy and regulation, the Biden administration is planning to reclassify marijuana as a less dangerous drug. The proposed reclassification, led by the U.S. Drug Enforcement Administration (DEA), acknowledges the medical benefits of cannabis and its lower potential for abuse compared to other controlled substances.

The White House Office of Management and Budget is currently reviewing this proposal. If approved, marijuana will be moved from being a Schedule I drug, alongside substances like LSD and heroin, down to a Schedule III classificaiton. 

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Kelley R. Taylor
Senior Tax Editor,

As the senior tax editor at, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.