Call to learn more: (855) 75-OMEGA

High Road Cannabis Tax Credit:
California Pays Cannabis Retailers to Create Opportunities for Employees

Omega Accounting Solutions respects your privacy. By submitting this form, you give your express consent to receive emails, calls and text messages, which may use automated technology, from a representative of Omega Accounting Solutions. Message and data rates may apply. We need your consent to contact you, but you can request further information without consenting to our contacting you by calling us at the phone number displayed on this site.

Your Privacy is Protected. View our Terms & Conditions

What is the High-Road Cannabis Tax Credit (HRCTC)?

The HRCTC is a California income tax credit that incentivizes cannabis retailers to provide full-time employment in their communities. Licensed dispensaries are eligible to recover 25% of qualified employee costs (including wages and benefits). Each eligible employee can generate an income tax credit worth $10,000 to $25,000 up to a maximum combined total of $250,000.

Start your free evaluation now

Do You Qualify for the HRCTC?

To qualify for the High-Road Cannabis Tax Credit, your business must:

  • Have a Type 10 or Type 12 Cannabis Business License
  • Have full-time employees (35+ hours per week on average)
  • Offer health insurance and retirement benefits to its employees

Why Apply for the HRCTC?

  • Keep more of your profits
  • Reduce state tax liability
  • Get incentivized to provide excellent employment opportunities
  • Carry forward any unused credit

What Omega Can Do For You

Claiming HRCTC can be complicated. We make it easier.

Our tax credit experts work closely with your team to ensure your business is awarded a tax credit during the application process. We build a High-Road Cannabis Tax Credit application that satisfies California’s requirements and prepare end-of-year compliance reporting to substantiate your credit eligibility.

How Omega Differs

At Omega, we work with small to mid-sized businesses to take the complexity out of tax credits. Our team understands the intricacies of corporate tax credit programs, but we also understand that what may be true for a multinational corporation may not apply to a smaller business. We can work with you to evaluate opportunities and provide “go” or “no go” feedback on the viability of different business incentives as they apply to your particular fact pattern.

Reducing your tax liabilities starts here.

Get Started Now

How It Works

  • 1We evaluate your financial records and projections to determine if you will qualify.
  • 2We assist you to submit an HRCTC application. The first round opens in July 2023.
  • 3At year-end, we help you build a compliance report to satisfy the application requirements.
  • 4Your tax preparer includes the results in your income tax return the following year as a direct offset to your tax liability.

Engage Omega

  • We simplify convoluted tax credits, helping businesses of all sizes to receive the government incentives they deserve
  • We are leading experts in tax credit processing and adhere strictly to federal and state regulations
  • Our knowledgeable team has several decades of combined experience serving small and medium-sized businesses

Substantial tax savings could be waiting for you.

Get Started Now

More About HRCTC

In 2016, California voters approved Prop 64, which legalized the use and sale of recreational cannabis for adults. Prop 64 also levied robust taxes on commercial sales that put licensed cannabis dispensaries at a cost disadvantage compared to the illicit market. The substantial difference in overhead costs left room for grey and black markets to offer significantly lower prices, driving consumers away from safe and secure retailers and toward unregulated products.

The High Road Cannabis Tax Credit was created by California Senate Bill 1336 to help licensed cannabis dispensaries reduce their tax liabilities to overcome the cost difference between licensed and illicit markets and help bring consumers back to legally-compliant retailers. The HRCTC also incentivizes storefront dispensaries to offer full-time employment opportunities, adequate compensation, retirement benefits, and employer-sponsored healthcare plans. By encouraging the creation of better jobs at legal dispensaries, the HRCTC also aims to help stimulate the communities that are home to licensed cannabis retailers.

About Omega

Founded in 2007, Omega Accounting Solutions is committed to helping small businesses thrive. Omega is not just a tax credit expert — we equip small business owners with big-business resources, empowering strategic decision-making through business intelligence, fractional accounting, and analytics. We fuel your growth with honest and insightful reports that help refine your business plan, boost efficiency, and maximize your tax credits. With significant returns in tax incentives secured for our clients, our experienced team has served a wide range of industries nationwide.

Back to top