NYS Legalization of Cannabis for Adult-Use

Bowers & Company CPAs is Ready to Service the Cannabis Industry

This past January, Governor Andrew Cuomo recently released his Executive Budget Proposal for 2021-2022. Included in his proposal is the Cannabis Regulation and Taxation Act, which would legalize cannabis for adult-use and expand the medical cannabis program. Though many details in the Act are undoubtedly subject to change, could this be the year an adult-use program is finalized in New York?
 

Currently in the United States, medical marijuana is legal in 36 states. Fifteen of those states have legalized adult-use marijuana. In 2020 alone, five new states legalized marijuana. On top of that, retail marijuana sales increased by 40% compared to 2019. The cannabis industry is expected to reach $37 billion by 2024. This rapid growth is no surprise, as a large portion of the industry was and still is living in the shadows.

As it currently stands, the Office of Cannabis Management will administer a competitive process to license applicants to the New York adult-use cannabis program. This includes separate licensing for processors, cultivators, distributors, and retailers. Applicants can seek licenses for both cultivation and processing, or for distribution, or for retail, but are not permitted to be vertically integrated. Additionally, entities with retail licenses are limited to having direct or indirect ownership in up to three retail locations.

Being directly involved with current NYS medical license holders, Bowers & Company holds the knowledge and expertise to help your cannabis business succeed.

Here are some of the services we plan on offering to the industry:

  • Attest and consulting engagements during the licensing process
  • Tax planning and entity structure in relation to IRC section 280E
  • Valuations and projections of businesses
  • Client accounting and bookkeeping
  • Financial Statement Audits and Reviews
  • Consulting on operating procedures, internal controls, and best practices
  • Tax return and cannabis sales tax compliance
 
Bowers & Company is eager to service this exciting and growing industry every step of the way. As more details become available, we will be sure to keep you updated.
 
For more information, please contact Nick Agrippino, CPA, CCIFP, MBA at (315) 234 8129 or nagrippino@bcpllc.com.

About Bowers & Company CPAs

Bowers & Company CPAs aims to offer helpful information to our clients and friends. Learn more about how we can help should your railroad business need accounting and financial services.

Disclaimer: To ensure compliance with requirements imposed by the Department of Treasury, we inform you any U.S. federal tax advice contained in this document or video is not intended for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter that is contained in this document.

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Nicholas Agrippino

Nicholas Agrippino

Nicholas A. Agrippino, CPA, CCIFP, MBA is a Tax Supervisor at Bowers & Company CPAs PLLC. Reach him at 315-234-8129 or nagrippino@bcpllc.com. Bowers & Company aims to offer helpful information to our clients and friends. Learn more about how we can help should your business need accounting services.

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