While recreational cannabis has been legal for nearly three years in New Jersey, some business types are just now able to begin their official license application process.
The CREAMM Act (New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act) of 2021 established six classes of business licenses for the recreational cannabis market.
The license application process opened for New Jersey Cultivators and Manufacturers in December 2021, while Retail followed suit in March 2022. The NJ Cannabis Regulatory Commission (NJ-CRC) announced that, as of September 27, 2023, applications will finally be accepted for the final three classes: Wholesaler, Distributor, and Delivery.
According to the NJ-CRC on NJ.gov:
Recreational cannabis businesses may integrate vertically. Vertical integration allows operators to hold any combination of a cultivator license, a manufacturer license, a retailer license, and a delivery service license simultaneously or hold a wholesale and a distributor license simultaneously. All recreational license holders can have only one business in each class. There is no established limit on the number of cannabis business licenses available statewide.
As with the original classes, entrepreneurs in these three new classes have the option to file for a conditional or an annual license. A conditional license grants the entrepreneur 120 days to build out the business, seek approvals, and convert to an annual license. Applicants also select if they will pursue a standard business or a microbusiness license. Microbusinesses in the New Jersey cannabis market must have no more than 10 employees and have a physical plant that is less than 2,500 square feet. License applications will be accepted and reviewed on a rolling basis, until indicated otherwise.
While the application period opens on September 27, the first 90 days are reserved for Social Equity Businesses. Beginning December 27, applications will be accepted from diversely-owned businesses, and the remainder of applications can submit their applications beginning March 27, 2024.
Schedule of Application Start Dates:
Read FAQs and more details from the NJ-CRC at nj.gov/cannabis.
Running a cannabis business in the state of New Jersey can be uniquely challenging. It is important to have a trusted and knowledgeable CPA by your side to guide you. Don’t hesitate to contact an Alloy Silverstein advisor today.
Additional Cannabis Tax & Accounting Resources:
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