If you are a cannabis investor who puts money into dispensaries or facilities located in distressed areas, you could be entitled to some tax breaks. The tax breaks are coming thanks to a government program called The Opportunity Zone program, which was developed in 2017 alongside the Tax Cuts and Jobs Act.
The program was intended to attract investors to build-up low-income areas, and the act contains no language excluding cannabis businesses, according to accountants and tax prep professionals. Real estate investing companies like Innovative Industrial Properties (NYSE: IIPR) could also see some significant tax breaks.
“The idea that it [that cannabis investors might not be eligible for the program] is a point of controversy is just not true… It’s very uncontroversial as far as we’re concerned,” said James Mann, partner at Greenspoon Marder LLP tax practice.