New York decoupled from §280E at the state level — and New York City followed for its own business taxes. This module layers the New York–specific detail onto your federal foundation: the decoupling mechanics, the excise structure, and the filing reality your NY clients actually face.
If your clients hold New York licenses — or you want to win them — this module gives you the state-and-city layer that a purely federal practitioner is missing.
You serve operators in New York and need the state and NYC tax treatment at your fingertips.
You handle NY among several states and need its decoupling and excise rules cleanly separated from federal.
You want New York operators as a niche and need to speak their state-tax reality fluently.
A DOJ Final Order effective late April 2026 moved state-licensed medical cannabis to Schedule III, which lifts federal §280E for those medical operations. Adult-use remains Schedule I, so §280E still applies in full to recreational activity — which is most of New York's market.
That makes the New York state decoupling more relevant, not less: state relief has been in place since 2022, the federal picture is now split by license type, and dual-license operators need careful expense segregation. This module is taught against that live, shifting backdrop.
New York layers its own decoupling, excise, and filing rules on top of the federal foundation. The module works through each.
| Item | Detail |
|---|---|
| State §280E | Decoupled — ordinary & necessary expenses deductible on the NY return for tax years beginning on or after Jan 1, 2022 |
| NYC §280E | Decoupled for UBT / GCT / BCT, retroactive to tax years beginning Jan 1, 2022 |
| Adult-use excise | 9% wholesale (paid by distributor) + 13% retail (paid by consumer, remitted by retailer; includes 4% local share) |
| Filing | Excise returns e-filed via NYS Tax Department Web File; "zero" returns required even with no activity |
| Audit risk | High — NYS Tax Department and the Office of Cannabis Management (OCM) may both review |
Figures reflect New York rules as of May 2026 and are taught as a starting point — always confirm current rates and forms on a live engagement.
A focused deep-dive that assumes your federal grounding and adds the New York layer — taught with worked examples and NY-specific workpapers.
The OCM framework, license types, and how New York structured its adult-use and medical programs.
How the 2022–2023 decoupling works in practice — what becomes deductible at the state and city level, and from when.
CoreWorking a NY client when federal §280E applies to adult-use but not medical — and segregating dual-license expenses.
CoreThe wholesale and retail excise, who remits, the local share, and how it flows through the books.
The state filing rhythm, electronic filing, zero-sales returns, and penalty exposure.
A New York client walked end to end — state and city adjustments, excise, and the supporting workpapers.
AppliedA clear treatment of the state and NYC §280E decoupling — what it changes and the dates that govern it.
How to handle the post-rescheduling split between medical (Schedule III) and adult-use (Schedule I) for NY clients.
The adult-use excise structure, remittance, Web File mechanics, and the zero-return rule.
State and city adjustment schedules and an excise tracker keyed to New York.
A fictional NY operator carried through state and city treatment, start to finish.
New York–specific questions with answer keys to validate the state layer.
Yes — the state module assumes the federal foundation from the Essentials Guide and Track 1 (§280E, §471 COGS, chart of accounts). It adds the New York layer on top; it is not a standalone substitute for the federal core.
At the state level, yes — New York decoupled effective for tax years beginning on or after January 1, 2022, and New York City decoupled for its own business taxes (enacted November 2023, retroactive to 2022). Federal §280E still applies to adult-use operators, so the state benefit sits alongside the federal limitation.
The DOJ order lifted federal §280E for state-licensed medical operations (now Schedule III); adult-use remains Schedule I and still subject to §280E. The module teaches how to work that split, which is exactly where specialist judgment now matters most.
No — like everything in the Academy it is educational. New York and federal cannabis rules are changing quickly; always verify current law and apply professional judgment on a specific engagement.
The state and city decoupling, the excise mechanics, and the federal split — the New York layer that turns a competent federal practitioner into the advisor NY operators want.