A congressman introduced a bill on Friday that would generate a selection of applications and grants to assist people today enter the hemp sector and construct their companies. It would also demand a federal study into prospective option utilizes for the crop as nicely as challenges faced by the market place.
Rep. Denver Riggleman (R-VA) filed the Hemp Chance Zone Act. As the title implies, the principal 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-revenue places that are deemed economically distressed. The governor of a state can make the designation, and Treasury then decides irrespective of whether to certify it. The plan is developed to market investments in communities that may generally be overlooked by enabling investors to defer capital gains taxes if they place dollars into an chance zone business enterprise.
“We are reviewing the legislation now, but if it certainly serves to open up investment in really hard-hit farming and compact business enterprise communities, it would be welcome relief for an sector that has been struggling by way of the COVID pandemic and federal burdens imposed by FDA, USDA and now the DEA,” Jonathan Miller, basic counsel for the U.S. Hemp Roundtable, told Marijuana Moment.