DEA registers 900 Florida and multi-state cannabis shops for tax relief

The U.S. Drug Enforcement Administration has granted its first registrations to medical marijuana dispensaries in Florida and six other states. The agency issued the approvals on Friday to more than 900 state-licensed shops, according to a Justice Department release. The department did not name the specific businesses that received the clearance.

The move follows an order signed by Attorney General Todd Blanche in April. That order shifted state-licensed medical marijuana from Schedule I to Schedule III. Schedule I is reserved for drugs with high abuse potential and no medical use, such as heroin. Schedule III carries less strict federal regulation. Blanche said in a statement that regulated distribution from these shops will help ensure access to chronic pain treatment and public safety.

The registrations unlock federal tax benefits that the industry has lacked for years. Because cannabis was previously treated as a federally illegal Schedule I substance, businesses could not deduct normal operating expenses on federal tax returns. Those expenses included rent, advertising, and labor costs. Industry leaders described the tax burden as financially crippling.

Florida currently has 49 licensed medical marijuana treatment centers. According to the state Office of Medical Marijuana Use, 25 of those centers are cleared for active dispensing. The state also counts 782 specific dispensary locations. Companies seeking registration must complete a pre-registration investigation. They must also maintain security, recordkeeping, and inventory controls for handling controlled substances.

The DEA published a list on Friday showing that nearly 7,000 other cannabis dispensaries, manufacturers, and distributors have applied for registration across the country. The approval process is expected to expedite federal oversight for producers and distributors in the 40 states with medical programs.

Steph Sherer, founder of Americans for Safe Access, called the registrations a tremendous victory for patient access. She noted that the approvals arrived just days before the 30th anniversary of California legalizing medical marijuana. Sherer said in a written statement that the federal government is finally recognizing the dispensaries that patients fought to establish.

Chris Lindsey, vice president of policy at the American Trade Association for Cannabis and Hemp, described the step as positive. He said the industry is now watching to see what specific operational requirements the DEA will impose on companies operating under the new classification.