Jacob H. Zoghlin Featured in Rochester Business Journal Article on Cannabis Industry

Underberg & Kessler Partner Jacob H. Zoghlin shared his perspectives on developments and challenges in the NYS cannabis industry in a recent Rochester Business Journal article titled “New York cannabis industry enters 2026 with growth, uncertainty.”

“From a legal and regulatory perspective, one of the most consequential developments shaping opportunities in 2026 is the anticipated federal rescheduling of cannabis from Schedule I to Schedule III under the federal Controlled Substances Act,” said Jacob. He further explained that rescheduling would not immediately legalize cannabis at the federal level or override state law but could strengthen the New York market and provide potential relief from a longstanding tax barrier.

“Perhaps the most significant immediate impact of federal rescheduling will be relief from the punitive federal tax treatment imposed by Internal Revenue Code Section 280E,” he said. “Under current law, because cannabis is a Schedule I substance, state-licensed cultivators, processors, and retailers cannot deduct ordinary business expenses such as payroll, rent, and utilities, effectively inflating their federal tax burden well above typical corporate norms.”

Jacob serves as Chair of Underberg & Kessler’s Environmental Law and Municipal Law practice groups and is a Partner in the firm’s Cannabis Law, Litigation and Real Estate & Finance practice groups. He counsels individuals, businesses, citizens’ groups, and municipalities on diverse environmental, land use, zoning, cannabis, energy, and municipal law matters. In his cannabis law practice, Jacob helps entrepreneurs grow their businesses by navigating them through complex state and local requirements, advising on license applications to the New York State Cannabis Control Board, assisting with statutory and regulatory compliance, and helping identify social equity benefits available under the Marihuana Regulations and Taxation Act.

To view the full article, reprinted with permission from Rochester Business Journal, click here.