Last week, Trump signed an executive order telling federal officials to finish the job of reclassifying marijuana as a less dangerous drug under federal law.
If that happens, cannabis would move from Schedule I, next to heroin and LSD, to Schedule III, a category that includes drugs like ketamine and some steroids.
What Changes and What Doesn’t
This order doesn’t make marijuana legal nationwide; states still decide.
What this does change is how legal cannabis businesses are treated by the IRS and federal regulators.
Right now, because marijuana is labeled a Schedule I drug, cannabis businesses can’t deduct normal business expenses on their federal taxes.
A 2024 study commissioned by the Nevada Cannabis Compliance Board found that if marijuana is reclassified, Nevada cannabis businesses could be deducting everyday costs like rent, payroll, insurance, equipment repairs, utilities, and marketing.
That’s not special treatment. That’s how every other legal business already works.
Nevada’s Had Legal Weed for Years
Nevada voters already settled the cannabis question back in 2016 when they approved recreational marijuana.
Cannabis isn’t new or fringe in Nevada. The legal marijuana market reported more than $820 million in sales during the last fiscal year.
Grow operations in places like Pahrump and dispensaries across Las Vegas and Reno employ thousands of Nevadans.
But federal law has kept the industry boxed in. Many cannabis businesses still can’t use normal banking services. Casinos generally can’t work with them because of federal rules.
And even though marijuana is legal in Nevada, it’s still illegal under federal law.
After Trump signed the order, the Cannabis Compliance Board said it’ll keep regulating licensing and compliance from seed to sale, with public health and safety as the focus.
In other words, Nevada’s rules stay the same unless the Legislature or voters say otherwise.
Praise, With Conditions
Rep. Dina Titus said the order helps with medical research and taxes but still leaves limits on banking access and doesn’t fully fix federal penalties for recreational users.
Riana Durrett of the UNLV Cannabis Policy Institute said the order moves policy in the right direction and called marijuana overly criminalized for decades. She also noted that research would still need federal approval since cannabis would remain a scheduled drug.
Public Opinion Has Changed
This change didn’t come out of nowhere. According to Gallup, support for marijuana legalization has climbed from 36% in 2005 to 64% today.
That shift helps explain why a Republican president is now pushing a reform that would’ve been unthinkable years ago.
Why This Works for Nevada
Nevada voters made their call years ago. Cannabis is legal. It’s regulated. It’s part of the economy.
But Washington’s been pretending otherwise, and local businesses have been paying the price.
Trump’s order doesn’t tell Nevada what to do. It doesn’t legalize anything new. If a business is legal in Nevada, it should be allowed to deduct rent, payroll, utilities, and repairs like any other business.
That’s not special treatment. That’s basic fairness.
It won’t turn into a free-for-all, but it could mean less red tape, lower taxes, and fewer mixed signals between state and federal law.
The opinions expressed by contributors are their own and do not necessarily represent the views of Nevada News & Views. Digital technology was used in the research, writing, and production of this article. Please verify information and consult additional sources as needed.
