The federal government is looking to loosen cannabis restrictions, which could have wide-reaching implications, even in states where medical and recreational use is already legal. Here's what reclassifying marijuana as a less dangerous drug could mean for the industry here in New York.

“Cannibas is a happy thing,” said Dan Brown, owner of Leafy Peaks dispensary. 

For decades, along with heroin and LSD, cannabis has been viewed as a Schedule 1 drug, a substance the federal government said has no acceptable medical use and a high potential for abuse.

“It’s horrible that it was classified with that from the beginning,” Brown said.

Business owners say the classification comes with a cost.

“Like a regular manufacturer, or a regular farmer, they are not able to deduct costs of goods sold (COGS)," said Kate Hruby, president & CEO of KJH Strategy. "They’re also called COGS on a business tax return.”

With this challenge in mind, the Department of Health and Human Services is asking the Drug Enforcement Agency (DEA) to review its Controlled Substance Act.

“That’s going to commence about a year-long process of rulemaking, if there are no lawsuits,” Hruby said.

Advocates in the industry say should it be approved, shop owners could begin writing certain business expenses off their federal tax returns.

“We’re talking about substantial amounts of money. We’re talking about potentially millions of dollars,” Hruby said.

But it doesn’t reduce the barriers many operators have when it comes to finding banking services.

“Finding a bank that will work with us is difficult," Brown said. "We’ve done it, but it's expensive, though.”

But they view all this as a step in the right direction.

“It should be good news," Brown said. "We’ll see how long it takes and what actually comes out of it.”