New Hampshire Cannabis Laws: Medical, Decriminalization & More

Understand New Hampshire's cannabis laws, including the medical program, decriminalization status, and federal tax implications for businesses. Get current facts.

Quick Answer: New Hampshire Cannabis Laws at a Glance

Category	Status
Medical cannabis	Legal, regulated program
Adult-use / recreational	Illegal
Small-amount possession	Decriminalized (civil fine, not criminal)
Home cultivation	Prohibited for all, including medical patients
Federal tax treatment	IRC §280E applies; ordinary deductions disallowed

New Hampshire permits medical cannabis access and decriminalizes small-amount possession. However, it prohibits adult-use and home cultivation. State-legal cannabis businesses face a challenging federal tax structure that disallows ordinary business deductions.

New Hampshire's Therapeutic Cannabis Program: Eligibility and Access

New Hampshire's medical cannabis program is managed by the NH Department of Health and Human Services (DHHS). This program offers the only legal avenue for cannabis access within the state.

Patient Eligibility and Qualifying Conditions

To enroll, patients need a written certification from a licensed practitioner confirming a qualifying medical condition. Historically, these conditions included cancer, glaucoma, HIV/AIDS, hepatitis C, ALS, muscular dystrophy, Crohn's disease, multiple sclerosis, and PTSD. For the most current and official list of qualifying conditions, consult the NH DHHS directly.

Who Can Write a Recommendation

Since 2019, House Bill 350 has authorized physician assistants to recommend medical cannabis (NH HB 350, 2019). This legislation broadened the range of practitioners who can certify patients.

The Three-Month Waiting Period

Governor Sununu vetoed legislation that aimed to remove the mandatory three-month waiting period for medical cannabis recommendations. However, the legislature later overrode this veto (NORML, 2019 Vetoed Legislation). Check with the NH DHHS for the current waiting period requirements.

Home Cultivation: Still Prohibited

Medical patients are not permitted to grow their own cannabis. Governor Sununu vetoed HB 364 (2019), which would have allowed registered patients to cultivate up to three plants at home. In his veto message, the Governor stated that home cultivation would "make the job of law enforcement significantly more difficult" and could decrease patient visits to licensed dispensaries. The legislature did not override this veto, so the prohibition remains in effect.

Dispensaries: Non-Profit Requirement Remains

New Hampshire's licensed dispensaries, known as Alternative Treatment Centers (ATCs), must operate as non-profit entities. SB 145 (2019) attempted to allow for-profit operations, but Governor Sununu vetoed it, expressing concern that the bill "would represent too great a step toward a dangerous path of industrial commercialization of the marijuana industry in New Hampshire." For information on current ATC locations and their operational status, consult the NH DHHS.

Decriminalization and Penalties for Cannabis Possession in New Hampshire

New Hampshire decriminalizes the possession of small amounts of cannabis. For first or second low-level offenses, it is treated as a civil infraction, not a criminal offense. This typically results in a fine instead of arrest or a criminal record. Decriminalization does not equate to legalization; there is no legal supply chain for recreational users, and possessing larger amounts or engaging in distribution remains a criminal offense.

Possession Thresholds and Penalties

Possessing three-quarters of an ounce (¾ oz) or less of cannabis is a civil violation for a first or second offense, punishable by a fine. Consult the NH General Court website for specific statutory language and fine schedules, as the legislature may adjust these.

Situation	Classification	Consequence
Possession ≤ ¾ oz (1st or 2nd offense)	Civil violation	Fine (consult NH General Court)
Possession ≤ ¾ oz (3rd+ offense)	Class B misdemeanor	Criminal record possible
Possession > ¾ oz	Criminal offense	Consult NH General Court for penalties
Distribution / sale	Criminal offense	Consult NH General Court for penalties

A third offense for possessing a small amount of cannabis is elevated to a Class B misdemeanor, which can lead to a criminal record. Any distribution activity, regardless of the quantity involved, is considered a criminal matter. Refer to the NH General Court website for applicable statutes.

Annulment of Low-Level Convictions

House Bill 399 (2019) allows individuals with low-level marijuana convictions to petition the court for record annulment (NH HB 399, 2019). This process is not automatic; it requires filing a petition and obtaining court approval. Individuals seeking to clear older convictions should consult an attorney experienced in New Hampshire criminal procedure and relevant annulment statutes.

Federal Tax Implications for New Hampshire Cannabis Businesses (IRC §280E)

Federal tax law applies to cannabis businesses irrespective of state legality, creating a substantial financial burden for New Hampshire operators.

What IRC §280E Does

Internal Revenue Code (IRC) §280E prohibits deductions for ordinary and necessary business expenses for any trade or business involved in trafficking Schedule I or II controlled substances. Since cannabis remains a Schedule I

Federal Tax Considerations

Cannabis businesses face unique federal tax challenges due to the classification of cannabis as a Schedule I controlled substance. Under IRC § 280E, businesses trafficking in such substances cannot deduct ordinary and necessary business expenses, limiting deductions primarily to Cost of Goods Sold (COGS).

IRC § 280E prohibits cannabis businesses from deducting most business expenses, only allowing the deduction of COGS.
Businesses must carefully calculate COGS to maximize allowable deductions while complying with IRS regulations.
Form 1065 or Form 1120 must be used for reporting income, but be aware that standard deductions are not available under § 280E.
The IRS may scrutinize cannabis-related tax filings closely due to the nature of the business, increasing the risk of audits.
Banking remains a challenge for cannabis operators, as federal law creates barriers; many rely on cash transactions or compliant credit unions.
The SAFE Banking Act has not yet resolved banking issues, meaning operators should be prepared for cash-heavy operations.

This is not tax advice — consult a CPA familiar with Cannabis for your specific situation.

Frequently Asked Questions

Why is adult-use cannabis illegal in New Hampshire?

New Hampshire has opted not to legalize adult-use cannabis, with legislation being vetoed by the Governor due to concerns about commercialization and law enforcement challenges.

What federal law impacts New Hampshire's cannabis businesses?

Federal law, specifically IRC §280E, prohibits state-legal cannabis businesses from claiming ordinary business deductions, which creates significant tax burdens for these entities.

Are there any active legislative proposals to change cannabis laws in New Hampshire?

While there have been proposals to allow adult-use cannabis and home cultivation, recent attempts have been vetoed by the Governor, and the current legislative landscape remains unchanged.

What should residents do if they need cannabis for medical purposes?

Residents requiring cannabis for medical reasons must obtain a written certification from a licensed practitioner and enroll in New Hampshire's regulated medical cannabis program.

How does New Hampshire's cannabis law compare to neighboring states?

Unlike some neighboring states that have legalized adult-use cannabis, New Hampshire maintains a strict prohibition on recreational use while allowing a medical program and decriminalizing small amounts of possession.