President Trump on Thursday signed an executive order to reclassify marijuana. While it might seem like a small move, it opens a new door for the industry as a whole.

“It’s going to have a tremendously positive impact, I believe,” Mr. Trump said when discussing the order.

Under the order, marijuana will go from a Schedule I controlled substance, categorized like heroin, to Schedule III, a classification similar to ketamine or testosterone.

Brian Yoath with the Michigan Pharmacist Association told CBS News Detroit, “This drastically increases our ability to research and test the product and get medical studies without some of the bureaucratic red tape.”

For cannabis businesses in Michigan, this change is significant.

Previously, a 280e internal revenue code prevented cannabis businesses from claiming standard business expenses federally. CBS News Detroit spoke to a Metro Detroit business owner about the tax code.

“I can’t write off the time I’m paying for rent, electric and payroll. All of that is included in my cost, and I still have to pay it,” Brian Yono, founder of Hyde Cannabis, explained.

For dispensary owners like Yono, the reclassification is a welcome change. He believes that because of it, his tax bill will be heavily impacted.

 “We get to operate like a level playing business,” he said.

While marijuana is still federally illegal, Mr. Trump says the reclassification will help with medical research into cannabis.

“I think you’re going to see more interest in the pharmaceutical companies coming up with a regulated, standardized product,” Yoath noted. 

While cannabis businesses may soon see federal tax relief, Michigan is adding a new 24% state tax that could raise costs.

“Unfortunately, with the tax hike, no one knows what 2026 will hold for us,” Yono said.