Do hemp farms, middle men, and retail from seed to sale get tax breaks and incentives for having a business in the US or do they get the same cash only treatment as the Cannabis industry?
This question is actually two different questions mixed together:
Do hemp farms, middle men, and retail from seed to sale get tax breaks and incentives for having a business in the US or do they get the same cash only treatment as the Cannabis industry?
To answer these two questions separately:
- There are not special tax incentives to promote growing industrial hemp. However, hemp growers can receive federal crop insurance, loans, and environmental incentives that apply to all agricultural producers.
- However, industrial hemp is not a cash-only business like state-legalized marijuana, as it is federally legal.
kersploosh@sh.itjust.works 8 months ago
“Industrial” hemp (i.e. for textiles, cloth, etc.) is now treated like any other crop. It was legalized in 2018.
snausagesinablanket@lemmy.world 8 months ago
This is medical hemp CBD, CBG, low THC below .03.
kersploosh@sh.itjust.works 8 months ago
As far as I can find, as long as the THC content is below 0.03% then there are no special business or tax rules. This lines up with the answer @fubo@lemmy.world gave. As far as the Feds are concerned, banks are clear to work with industrial hemp growers and resellers (relevant NY Times article).
Whether banks are open to working with industrial hemp customers is a separate issue. It seems like most are waiting for the SAFER Banking Act to get some traction in Congress. That bill should explicitly confirm what is legal at the federal level in terms of banking, loads, and insurance for both industrial hemp and the rest of the cannabis industry.