Frequently asked questions about Equity fee relief
Q: What does the equity fee relief program provide?
A: DCC’s equity fee relief program provides fee waivers and deferrals to qualifying applicants and licensees.
Approval for equity fee relief designates your business as an equity business, connecting you to customers searching for equity retailers via the Cannabis Unified License Search.
Being designated an equity business also helps DCC develop and implement programs to assist equity businesses.
Q: What is an equity fee deferral?
A: An approved equity fee deferral allows you to delay payment of your license fee for up to 6 months after issuance.
Application fees are not eligible for equity fee deferrals.
Approval for an equity fee deferral qualifies you for the Franchise Tax Board’s (FTB) cannabis equity tax credit program.
Q: What is an equity fee waiver?
A: An approved equity fee waiver can be used to cover the cost of your license fee if funding is available. Approved equity fee waivers cannot be applied to application fees, even if funding is available.
Approval for an equity fee waiver qualifies you for the Franchise Tax Board’s (FTB) cannabis equity tax credit program.
An approved equity fee waiver also qualifies retail licensees and microbusiness licensees with retail activity for the California Department of Tax and Fee Administration’s (CDTFA) vendor compensation program.
Q: Can license applicants apply for equity fee relief?
A: New applicants can apply for equity fee relief by uploading the fee relief request form when completing their initial license application.
Q: How do licensees apply for equity fee relief?
A: Renewing applicants can apply for equity fee relief by submitting a completed fee relief request form and tax documentation to equity@cannabis.ca.gov.
Q: When should licensees apply for equity fee relief?
A: Licensee may apply for equity fee relief anytime within 60 calendar days of their license expiration date.
Q: Can I apply for a fee waiver on a license that has a deferral?
A: Licenses with unpaid equity deferred license fees cannot apply for a fee waiver to pay the deferred license fee.
Q: What is CDTFA’s vendor compensation program, and how do I qualify?
A: CDTFA’s vendor compensation program allows licensed cannabis retailers and microbusinesses with retail activity and approved for a DCC fee waiver to retain 20% of the cannabis excise tax due on their retail sales.
To learn more about the vendor compensation program, review CDTFA’s webpage for Cannabis Retailers with Cannabis Businesses.
Q: Can I receive a fee deferral while qualifying for CDTFA’s vendor compensation?
A: Licensed retailers or microbusinesses with retail activity that would like to receive CDTFA vendor compensation and defer their license fee can select the checkboxes for both a fee waiver and a fee deferral when completing the DCC Form 1601: Equity Fee Relief Request Form.
Q: What is FTB’s cannabis equity tax credit program, and how do I qualify?
A: FTB’s cannabis equity tax credit program allows licensed cannabis businesses approved for a DCC equity fee waiver or equity fee deferral to receive a $10,000 tax credit.
To learn more about the cannabis equity tax credit program, review the Cannabis Equity Tax Credit | FTB.ca.gov webpage.
Q: I didn’t apply for a fee relief this year. Can I still qualify for the vendor compensation and cannabis equity tax credit programs?
A: Unfortunately, DCC cannot review or approve your fee relief request if you did not apply before your license expiration date.
Q: Who can I speak to about my fee relief application?
A: You can contact the DCC by emailing info@cannabis.ca.gov or calling 1-844-61-CA-DCC.
Contact us
Email info@cannabis.ca.gov if you have questions about the equity fee relief program.
Related content
Apply for fee relief
Learn how to request equity fee relief and show you meet the equity criteria.
Equity fee relief – Department of Cannabis Control
If you were negatively affected by the criminalization of cannabis, you can apply to have your license fee waived and/or deferred.
