LOS ANGELES — The Trump administration has reclassified medical marijuana from Schedule 1 to Schedule 3 under federal law, offering some dispensaries their first opportunity to claim standard business tax deductions.

But in California, where recreational cannabis dominates the market, many business owners said the immediate impact will be limited.

For years, cannabis retailers have been unable to deduct basic operating costs — including rent, payroll and the cost of cannabis itself — from their federal taxes, regardless of whether their state had legalized the drug.

The reclassification changes that, but only for businesses operating under medical licenses.

Jay Handel, who runs a dispensary in Venice, Los Angeles, has long felt the burden of those restrictions. Under the previous rules, he paid federal tax on his total sales without being able to offset any expenses.

The reclassification, he said, opens the door to fairer treatment and potentially lower prices for customers.

He has already begun encouraging some regular customers to obtain medical prescriptions rather than purchasing recreationally, a shift that would benefit both sides financially.

With roughly 95% of California’s cannabis revenue coming from adult-use sales, cannabis attorney Jean Smith Gonnell said the reclassification will not immediately benefit most businesses.

Many of her clients have already surrendered their medical licenses entirely, having transitioned to recreational sales years ago.

The announcement from the Department of Justice also flagged a federal hearing scheduled for June, which will evaluate broader changes to marijuana’s status under federal law.

That prospect is generating as much concern as optimism. Handel worries that wider federal involvement could bring a new federal sales tax — and expand the cannabis market to major national retailers.

“It will hurt every small cannabis business in the nation,” he said.