Publicly traded cannabis companies are looking to their tax returns to save tens of million of dollars this year – and possibly recoup taxes paid in previous years. With the recent announcement of the Biden administration’s cannabis rescheduling and a pending legal case challenging the constitutionality of the Controlled Substances Act, multistate operators are taking steps to seize 280E tax savings.
Following the lead of Trulieve Cannabis Corp., companies like Planet 13 Holdings Inc., TerrAscend Corp., and The Cannabist Co. Holdings Inc. are amending their federal returns to capitalize on potential tax benefits. Planet 13 co-CEO Larry Scheffler highlighted the significant impact of tax savings on their business, expressing plans to reinvest the saved funds into growth initiatives.
Planet 13 has already filed protecting claims for the past three years, similar to Trulieve’s successful $113 million tax refund from the IRS. CFO Dennis Logan emphasized the positive cash flow impact this strategy will have for Planet 13 shareholders. The Cannabist Co. Holdings Inc. is also pursuing tax return amendments and refund claims related to 280E, with potential annual federal tax savings of around $30 million if the regulation is nullified.
TerrAscend Executive Chairman Jason Wild is also taking steps to leverage tax savings, aligning with industry trends to maximize financial benefits. These strategic moves by cannabis companies reflect a proactive approach to financial management and growth amidst evolving regulatory landscapes.
