Treasury and IRS release 2026–2027 Priority Guidance Plan

The U.S. Department of the Treasury and the Internal Revenue Service have released their 2026–2027 Priority Guidance Plan, outlining the tax issues the agencies intend to address through new regulations and notices.

A key inclusion in the plan is guidance regarding Section 280E, which currently prevents businesses trafficking in Schedule I or II controlled substances from claiming standard tax deductions. Following an order that moved state-licensed medical marijuana to Schedule III, federal officials intend to clarify how this rescheduling affects businesses, particularly those with mixed medical and recreational operations.

The plan also reflects priorities advocated by the National Association of Manufacturers (NAM). These include finalizing guidance for Section 168(n) regarding facility expensing, supporting research and development through Section 174(a), updating regulations for carbon capture under Section 45Q, and adjusting what qualifies as gross deduction-eligible income to better reflect manufacturing expenses.