Background

Hemp

By now, you are aware of paradigm shifting benefits of CBD. But did you know that CBD is just the tip of the iceberg for Hemp?

In the 1938 issue of Popular Mechanics, hemp was hailed as the first "Billion Dollar Crop". It was used in over 25,000 products, "From Cellophane to Dynamite". Unfortunately, this potential was never realized, due to federal laws that eventually criminalizing hemp production without a "Marihuana Tax Stamp".
The history of hemp goes back to the beginnings of human civilization. Humans have utilized hemp for vital resources - food, fiber, and fuel. Hemp is a superfood, packed with protein and EFAs like Omega - 3. Hemp as a fiber is the longest and strongest natural fiber in the plant kingdom. It can be used in textiles, in paper products, and industrial strength building materials. For example, Hemp mixed with a lime-cement binder creates "Hempcrete", a revolutionary green building material. Hemp as a fuel is another untapped potential that we will re-discover over the next decade.
In 2019, Hemp became legal under Federal Law for the first time, and the USDA legal program has hardly rolled out. We are on the ground floor of an unprecedented opportunity. Hemp is a major catalyst for a larger paradigm shift to a more bio-based economy, where we will have compostable products and plastics, grown and made here in the USA, that are more than just sustainable - they are regenerative. Large scale hemp production can actually help reverse climate change. And this is just the beginning.

Opportunity Zones

Created as part of the "Tax Cuts and Jobs Act of 2017", the Opportunity Zone (OZ) Program creates lucrative tax incentives, that we will outline for you here. These benefits apply when the investment is channeled through the Hemp Opportunity Fund, into a Qualified Opportunity Zone Business (QOZB). Hemp is uniquely suited for this for several reasons, described in our "About" page. Here is a brief summary of the benefits for OZ investors:

  1. Immediate Tax Deferment - Funds that are transferred from one asset class, such as stocks, have their Capital Gains taxes deferred until the end of 2026. This is like a completely free loan from the Federal Government, at 0% interest rate.

  2. Tax Cut - On these Funds that are transferred, in 2027, the tax bill will be due. That tax break will be 10% -15%.

  3. Zero Percent - 0% - Tax Rate - When an OZ investment is kept for 10 years, the tax rate for all Capital Gains, becomes zero. This is the huge benefit that also helps to stabilize our economy by incentivizing longer term investments. It also helps the hemp industry build a solid foundation.