DEA Opens Schedule III Registration Portal for Medical Cannabis Businesses

The DEA has launched a new Schedule III registration process for state-licensed medical cannabis businesses, including manufacturers, distributors, and testing laboratories. This significant development brings these operations into the federal controlled-substances regulatory framework for the first time. A major benefit for qualifying operators is relief from Internal Revenue Code Section 280E, which previously prevented cannabis businesses from deducting ordinary business expenses. This regulatory shift represents an important step toward federal recognition of medical cannabis programs and could improve the operational and financial viability of compliant medical cannabis enterprises serving patients.