HEMP IS LEGAL!
On December 20th 2018 hemp flower and the production of flower derived CBD products have become decriminalized; passed within the 2018 Farm Bill.
For decades hemp flower sourced products were illegal even though they lacked the psychoactive molecule THC. Previously “Industrial Hemp” was allowed to be grown for fiber, seeds, oil etc, however, it is the Marijuana strains of cannabis that produce the pharmaceutical grade CBD compounds. Assuming the flower produced, is under .3% THC then the product is considered hemp, and is now legal for interstate and international commerce.
For tax purposes hemp (below .3 THC) is treated very differently than marijuana (above .3 THC), marijuana is still considered an illegal schedule I drug and is considered to have no medical benefits. Hemp is now considered a crop and is reported on schedule F with none of the limitations that are imposed on marijuana production. Marijuana is considered a manufactured product and would be reported in accordance to manufacturing requirements. Marijuana is subject to the IRC 280E, banking, and interstate commerce limitations.
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