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280E cannabis tax strategy
Bob Hoban, Hoban Law Group · Last updated May 2026
On-record soundbite (1–2 sentences)
“Section 280E is the most punishing provision in the tax code for a legal American industry. Cannabis businesses pay effective federal rates of 70 percent or more because ordinary business deductions are stripped away. Structuring around it is not tax evasion — it is essential business architecture.”
— Robert Hoban, Hoban Law Group
Extended quote (3–4 sentences)
“Section 280E is the most punishing provision in the tax code for a legal American industry. Cannabis businesses pay effective federal rates of 70 percent or more because ordinary business deductions are stripped away. Structuring around it is not tax evasion — it is essential business architecture. The most defensible approach involves clearly delineated COGS-eligible activities, meticulous cost accounting, and separate legal entities for ancillary services. I have seen well-run cannabis companies destroyed by 280E exposure that a proper structure would have mitigated.”
— Robert Hoban, Hoban Law Group
Attribution
Robert Hoban, Founder and Managing Partner, Hoban Law Group. Quotes may be used in editorial coverage with this attribution line. For background briefings or custom quotes on adjacent topics, contact the press team.