section 280e of the internal revenue code has emerged as an unexpected catalyst potentially injecting a staggering 700 million boost into cash flow for major cannabis companies the cannabis industry has faced numerous challenges including falling prices excessive debt and stagnant sales in mature markets while many believed that banking legislation or stock exchange listings would be the saviors a surprising alternative has come to light section 280e of the internal revenue code viridian capital advisors one of the earliest financial and strategic advisory firms in the cannabis sector says that eliminating this provision would have a more significant effect than anticipated potentially increasing free cash flow fcf and profitability for major cannabis companies as reported by debra borchardt for green market report by removing the restriction on deducting business expenses an estimated 700 million could be added to the 2023 fcf making the eradication of 280e a critical factor for the industrys recovery   cannabis chart of the week rule 280e – taxation without representation   exclusive deschedulingrescheduling cannabis will it be an expeditious path to 280e relief this is the one moment to do it   your guide to cannabis real estate 280e and entities