A congressman introduced a bill on Friday that would develop a wide variety of applications and grants to assistance persons enter the hemp business and construct their firms. It would also call for a federal study into prospective option utilizes for the crop as properly as challenges faced by the market place.
Rep. Denver Riggleman (R-VA) filed the Hemp Chance Zone Act. As the title implies, the primary element of the legislation clarifies that farmers who cultivate the crop can obtain tax rewards if they operate in an location designated as an “opportunity zone” by the Treasury Division.
Chance zones are census-designated low-earnings regions that are thought of economically distressed. The governor of a state can make the designation, and Treasury then decides whether or not to certify it. The system is created to market investments in communities that may commonly be overlooked by enabling investors to defer capital gains taxes if they place dollars into an chance zone enterprise.
“We are reviewing the legislation now, but if it certainly serves to open up investment in really hard-hit farming and little enterprise communities, it would be welcome relief for an business that has been struggling via the COVID pandemic and federal burdens imposed by FDA, USDA and now the DEA,” Jonathan Miller, common counsel for the U.S. Hemp Roundtable, told Marijuana Moment.
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