The landscape changed significantly in late 2025 and early 2026 due to two major factors: Federal Rescheduling and the 2026 Extensions Act.
5.1 Schedule III and Section 280E
The move of cannabis from Schedule I to Schedule III has begun to revolutionize dispensary finances. Under the old rules (Section 280E), dispensaries could not deduct normal business expenses (rent, payroll) from their taxes. In 2026, as 280E is phased out, dispensaries are finally becoming profitable, leading to lower prices for consumers and better benefits for workers.
5.2 The Hemp Crackdown
The 2026 Extensions Act effectively closed the "loophole" created by the 2018 Farm Bill.
The 0.4mg Cap: Federal law now limits hemp-derived products to a total of 0.4mg of THC per container. This has effectively removed "gas station weed" (Delta-8, Delta-10, and high-THCA hemp) from the market, forcing those consumers back into the regulated, lab-tested dispensary system.
Would you like me to continue with more chapters?
I can expand significantly on:
Cultivation Trends for 2026 (Regenerative farming vs. high-tech indoor).
The Rise of Minor Cannabinoids (The science of THCV, CBG, and CBC).
Global Markets (Thailand's emergence and Germany's medical boom).
Economic Forecasts (The $47 Billion U.S. market).