A congressman introduced a bill on Friday that would build a wide variety of applications and grants to aid persons enter the hemp sector and construct their organizations. It would also need a federal study into possible option utilizes for the crop as effectively as challenges faced by the industry.
Rep. Denver Riggleman (R-VA) filed the Hemp Chance Zone Act. As the title implies, the most important element of the legislation clarifies that farmers who cultivate the crop can obtain tax rewards if they operate in an region designated as an “opportunity zone” by the Treasury Division.
Chance zones are census-designated low-revenue places that are regarded economically distressed. The governor of a state can make the designation, and Treasury then decides no matter if to certify it. The system is developed to market investments in communities that may possibly commonly be overlooked by permitting investors to defer capital gains taxes if they place cash into an chance zone small business.
“We are reviewing the legislation now, but if it certainly serves to open up investment in tough-hit farming and modest small business 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.