Cannabis businesses are ready to launch in Connecticut. But since marijuana is still illegal federally, many do not have the funds to move their companies further. However, Connecticut Cannabis Capital LLC will help them acquire the funds needed to get off the ground. The goal is to reach the 30 Million Dollar mark in venture capital within a year. Read more on the Hartford Business Journal >
Finance & Accounting
On June 17, 2021, Connecticut’s Senate Bill 1201: An Act Concerning Responsible and Equitable Regulation of Adult-Use Cannabis was signed. Importantly, this bill legalizes cannabis for adults 21 and older and expunges records of cannabis-related convictions. Moreover, the legislation contains reforms that address equity, criminal justice, and public health. Excitingly, Connecticut is now the 18th state to legalize cannabis for adult users.
Beginning on July 1, 2021, adults 21 and over can possess up to 1.5 ounces of cannabis or an equivalent amount of cannabis products or concentrates. Furthermore, adults can now cultivate up to three mature and three immature plants in their homes. The bill also decriminalizes possession exceeding the 1.5-ounce cap, imposing a civil fine instead of possible jail time.
The tax rate on cannabis includes first a 3% municipal sales tax directed to the town or city where the retail sale occurred. Furthermore, there will be a 6.35% state sales tax. Additionally, cannabis products will be taxed based on the THC content of the product as follows:
- 2.75 cents per milligram of THC for cannabis edibles
- 0.625 cents per milligram of THC for cannabis flower
The bill imposes an excise tax on the first sale or use of cannabis flowers, cannabis trim, or wet cannabis by a cultivator in the state. The tax rate is:
- $1.25 per dry-weight gram of cannabis flowers,
- $0.50 per dry-weight gram of cannabis trim, and
- $0.28 per gram of wet cannabis.
The state will allocate a percentage of this tax revenue to communities that the war on drugs has most negatively impacted. The fund will be called the Social Equity and Innovation Fund. Moreover, the state will also allocate a percentage to support substance misuse treatment and prevention. This fund will be known as the Prevention and Recovery Services Fund. Under the bill, each cannabis establishment must maintain tax documents in an auditable format for the current tax year and the three preceding tax years.
All cannabis establishments are required to report their annual electricity usage annually. They must also specify which fraction of electricity generation comes from Class I Renewable Portfolio Standards produced in the state through the Regional Greenhouse Gas Initiative (RGGI). Cannabis companies are encouraged to purchase renewable energy when possible.
The legalization of marijuana will curb the sale of it on the black market and thus protect consumers. Moreover, the market will generate new jobs and business opportunities while creating a stream of millions in annual tax revenues for the state. The green rush is here in Connecticut! Are you excited to be a part of it? Contact us today to learn how we can help!
Cannabis Business Licensing Elligibility in CT
Connecticut’s Senate Bill 1201: An Act Concerning Responsible and Equitable Regulation of Adult-Use Cannabis, legalizes cannabis for adults and expunges thousands of records. As a result, Connecticut is the 18th state to legalize adult-use cannabis. In particular, the bill replaces an illegal cannabis market with a taxed and regulated system. However, to enter into this market, all businesses must be licensed through the Connecticut Department of Consumer Protection (DCP).
Cannabis licenses are awarded by lottery. Therefore, all eligible applicants have an equal chance, preventing unsuccessful applicants from paying large amounts of money. Lottery winners receive a provisional license. Nevertheless, this licensee must have zoning approval from the town to be fully licensed and begin operating. Notably, half of the newly issued cannabis business licenses will be to social equity applicants. Defined as individuals from communities disproportionately impacted by the enforcement of cannabis prohibition, social equity applicants may receive technical assistance, workforce training, and start-up funds. Moreover, starting September 1, 2021, licensing applications from medical dispensaries to serve adult-use will be accepted. However, those that have been convicted within the past ten years of certain crimes are ineligible for cannabis licensing.
Licensing in Connecticut for cannabis will be under new subsections, including cultivator, micro cultivator, retailer, hybrid retailer, food and beverage manufacturer, product manufacturer, product packager, and delivery services. Furthermore, each of these has its own subsection of what defines them as an entity. Here are the subsection’s definitions and licensing fees:
Licensing Fees in CT
- Cannabis cultivation involves any business growing cannabis on a commercial level. Cultivator fees include a $1,000 lottery fee, a $25,000 provisional license fee, and a $75,000 final license or renewal fee.
- Micro cultivators are a license category meant to allow smaller-scale growers to enter the market. Micro-cultivator fees include a $250 lottery fee, a $500 provisional license fee, and a $1,000 final license or renewal fee.
- Retailers are dispensaries selling cannabis products. Retailer or hybrid retailer fees include a $500 lottery fee, a $5,000 provisional license fee, and a $25,000 final license or renewal fee.
- Food and beverage manufacture products that include cannabis-infused edibles. These fees include a $250 lottery fee, a $1,000 provisional license fee, and a $5,000 final license or renewal fee. Likewise, these are the exact fees for cannabis delivery services and transportation companies.
- Businesses producing non-food or beverage cannabis products would be in the subsection of the product manufacturer. These fees include a $750 lottery fee, a $5,000 provisional license fee, and a $25,000 final license or renewal fee.
- Any business packaging cannabis products will also need licensure. Product packager fees include a $500 lottery fee, a $5,000 provisional license fee, and a $25,000 final license or renewal fee.
Contact Schleidt Works today to learn how we can help your cannabis business thrive!
It’s a green new day! The Connecticut Senate has passed a bill for the legalization of cannabis after several weeks of negotiations between legislative leaders and Governor Lamont’s office. On Thursday, The Connecticut Senate approved the bill. Marijuana possession will be legal July 1, 2021, and retail sales are targeted for May of 2022.
An Ideal Business Venture
The cannabis industry is not going anywhere. During the 2020 COVID-19 economic shutdown, medical marijuana dispensaries were deemed essential and continued to stay open across many states. Being that more states are now seeing the legalization of cannabis, it is an opportune time to start a business in the cannabis industry. According to industry research group New Frontier Data, the market value of the cannabis industry in the United States will reach $30 billion annually by 2025. In addition, as more and more states legalize the adult recreational use of cannabis, the demand for cultivators, manufacturers, and dispensaries will increase exponentially. Furthermore, the rise and sale of products containing THC and CBD stretch across various industries. For example, there are now many beauty products and hair care lines containing cannabis. Even if cannabis is not your direct product, incorporating it in some way may increase your profitability.
Starting Your Cannabis Business
Cannabis entrepreneurs have to obtain special licenses. This process can be lengthy and expensive. However, since the cannabis industry is diverse, many businesses are entering into the arena with their existing skill-set. But they can’t go it alone! Therefore, it’s crucial to establish and maintain beneficial partnerships in the early stages of your business venture. Such professional associations include lawyers, accountants, marketing professionals, and most importantly, a seasoned cannabis industry CFO. While the cannabis industry is a highly competitive and regulated business environment, a virtual CFO with specific knowledge and expertise in the industry will keep your business on track and profiting. Contact Schleidt Works today to learn more about how we can help your cannabis business succeed!
What is Decarbonization?
Decarbonization is a process in which carbon dioxide emissions from the use of fossil fuels are phased out. It both refers to the process of removing carbon from the process chain and is also a term used to describe avoiding the combustion of fossil fuels. Decarbonization solutions include an increase in the use of solar and wind energy. Both of these are on track to make up more than three-quarters of the United State’s electricity generation. The end goal of decarbonization is to reduce the amount of carbon dioxide that is being released into the atmosphere. As such, decarbonization technology is important for managing the global greenhouse gas problem. Decarbonization consulting includes implementing the latest decarbonization technology to further your company’s effort towards fewer emissions.
Decarbonization Consulting Strategies
As a decarbonization consulting firm, we offer your companies of all sizes sustainability solutions. Our decarbonization strategies include an increased utility load through sustainable decarbonization by unlocking the value via ratepayer savings. We do this with heat pumps, EVs, and other measures. We can design and determine the economic payback decarbonization of electricity using custom analytics for your market. Using this data, we can help you lead initiates to increase your load through program management and marketing.
We use the most current decarbonization knowledge to meet you where you are on the journey towards fewer emissions. Moreover, we find a strategy that best suits your company and goals. Converting to a carbon-free economy will take time, but it’s a mission that we stand behind. Because we are such solid believers, we are willing to trade our services for first-year revenue on any account we increase. What does this mean for you? No outlay except a future revenue increase for the next 20-25 years. Contact us today to learn more!