Treasury Secretary Mnuchin opposes federal tax breaks for cannabis businesses

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Treasury Secretary Steven Mnuchin may be open to a bipartisan solution to marijuana firms’ banking woes, but he doesn’t believe cannabis businesses should have the ability to receive federal “opportunity zone” tax credits.

That was the sentiment he expressed during a Senate hearing, according to Bloomberg.

Mnuchin told the Senate Appropriations Committee that providing MJ businesses with federal tax incentives – even in states that have legal marijuana programs – isn’t consistent with the 2017 tax law’s intent.

However, the goal of the tax incentives is to encourage investments in low-income and economically distressed communities.

Many cannabis legalization advocates want to ensure benefits to communities hardest hit by federal marijuana prohibition.

On banking, Mnuchin previously expressed concerns that the Internal Revenue Service often has to handle cash from marijuana businesses, and he has articulated support for a legislative solution to what he agrees is a public safety problem.