A Guide to Act 176 (2026)

Permits retailers to sell 2 ounces of cannabis to consumers who are 21 years old or older. This increases the limit from 1 ounce.

Personal possessions threshold raised for individuals over the age of 21. Adults can now possess 2 ounces of cannabis instead of 1 ounce, and 10 grams of hash instead of 5 grams.

The Cannabis Control Board (CCB) will issue up to 10 permits per year for a temporary events remote retail sales pilot program that sunsets on July 1, 2028, with a reporting mechanism for legislators to assess in 2027. The events are to be strictly age-gated at 21+ and only held in towns that have already voted to allow retail cannabis sales. Sales may not be conducted at a licensed location while a retailer is participating in a permitted event. Consumption of cannabis is prohibited at these events, along with co-mingling with alcohol. Events are restricted to 24 hours, and the permit fee is $500. The CCB will assess and handle noncompliance consistent with the Board’s policies through procedures developed for the event pilot program.

It is important to highlight that Senators worked with the industry to develop a strong event pilot program that brought value to licensees and patrons by allowing cultivators and manufacturers, as well as retailers, to sell directly to event attendees. This proposal would have enabled exciting events such as a cultivator hosting a tasting after harvest, collaborating with product makers and other licensees, or a retailer organizing a true farmers market at a mountain resort featuring producers they work with, who could also sell directly to consumers. We contributed to this proposal and fought hard to get it successfully passed through both the Senate and the House committees overseeing cannabis legislation in the State House. The Governor even signaled that he had no issue with the proposal. However, at the last minute, special interests undermined the proposal using undemocratic means, resulting in the narrower, more incomplete concept we have today.

This section requires event permit holders under the event pilot program to collect the cannabis excise tax for the State.

This is a technical section for the event pilot program.

Event permit holders must remit collected cannabis excise tax to the Department of Taxes before the 25th of each month, collect records from each purchaser, and retain them for at least 3 years under the event pilot program.

This is a technical section for the event pilot program.

Event permit holders must apply for and obtain a cannabis retail tax license for each business location in the State. The State shall issue these licenses free of charge to the permit holder.

This is a technical section for the event pilot program.

This section directs the CCB to start an abbreviated rulemaking process for the event pilot program by July 1, 2027, and submit a report to lawmakers assessing the program by November 15, 2027.

Reduces the annual license fees for Tier 1-5 Cultivators by 50% and goes into effect on July 1, 2027.

• Tier 1: $375 (Formerly $750)

• Tier 2: $925 (Formerly $1,875) 

• Tier 3: $2,000 (Formerly $4,000)

• Tier 4: $4,000 (Formerly $8,000) 

• Tier 5: $9,000 (Formerly $18,000)

This section is one of many throughout the Act that remove the Integrated License type from the law.

The frequency of CCB reimbursement payments to a town for local management costs changes from quarterly to annual.

Allows the CCB to file a civil collection action in the Vermont Superior Court for final administrative penalties.

The employee identification card term will increase from one year to two years, and the fee will rise from $50 to $100. Some low-risk, stable products will also allow registration for more than one year.

These sections remove the Integrated License type from the law.

This corrective section, at the Tax Department's request, makes it explicit in law that licensees may deduct cannabis business expenses on state tax returns. No substantive change here.

This is another corrective section, at the request of the Tax Department, to make it explicit that cultivators of cannabis outdoors, not just those initiating cultivation, under the Value Appraisal Program, are subject to the rules under the CCB. No substantive change here.

This is the final corrective section in the Act, at the Tax Department's request, allowing it to share tax information with the CCB for tax administration purposes. No substantive change here.

This section creates a new State corporate registration for cannabis producer cooperatives. A producer-owned cooperative corporation registration has long been available to individuals who produce farm and handmade products. This section now allows cannabis cultivators to access the same type of corporation registration, called a Cannabis Cultivation Cooperative Corporation.

These sections create a mechanism to establish a regional compact with neighboring adult-use cannabis states should the federal government legalize cannabis.

The proposal provides flexibility for the governor to enter into a compact in the future, with the intention of establishing requirements for compatibility between state laws as members of the compact, such as packaging and licensing, and to what extent other state licensees may operate in the state, and allows the CCB to be the authority over such matters.

This final section contains the repeal dates for different sections throughout the Act.

• Repeals the Integrated License on July 1, 2026.

• Repeals the cannabis establishment chapter that does not apply to hemp or medical cannabis use on July 1, 2026.

• Repeals the event pilot program on July 1, 2028.

These sections explicitly protect non-homeowners by preventing property owners from prohibiting non-lit cannabis consumption in lease agreements and places the burden on them to prohibit smoking. This change does not apply to rental agreements required by federal law to prohibit cannabis consumption.

This final section contains the effective dates for different sections throughout the Act.

• The reduction to the Outdoor Cultivator annual license fees in section 10a takes effect on July 1, 2027.

• The changes to the employee ID card fees in section 13 go into effect on July 1, 2027.

• The household income and deduction from cannabis business expenses in Section 24 go into effect on January 1, 2025. This allows deductions for years of operation before the Act's effective date.

• The property tax credits in section 15 take effect on January 1, 2026.

• All other sections go into effect on July 1, 2026.