Under a new budget proposal, New York’s cannabis producers and distributors are set to receive tax breaks despite a federal rule prohibiting them, Bloomberg reported Thursday.

A federal provision, known as 280E, does not allow companies that sell illegal substances to receive tax deductions, which cannabis companies say put them at a disadvantage, the Washington Post reported.

As part of one of 10 bills unveiled Thursday, New York has proposed allowing the state’s cannabis producers could begin collecting tax breaks as they move from the medical market into the adult-use market. New York’s legislature was expected to pass the bill Thursday.

Read more in the Bloomberg article.

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