OF DOING BUSINESS WITH THE NAVAJO NATION
Locating upon the Navajo Nation is both, smart business and personally fulfilling.
LOWER TAXES & FEES
The USA has not legalized cannabis on a Federal level, therefore each State sets their own tax rates, rules & regulations, & laws governing cannabis production companies. Please check the specific State's taxation rules for detailed breakdowns and percentages.
In Canada, as a result of the recent legalization of cannabis, the Federal government allows each province to set their own tariffs and fees in the governance of cannabis production. Please check your specific province's taxation rules for detailed breakdowns and percentages.
LOWER OPERATING & LABOR COSTS
The average annual salary for labor is considerably much less when employing a Native American, than found almost anywhere else in the world. Also with their unlimited water supply from the San Juan River which is connected to the Colorado River Basin, they will make available to the business. The Navajo Nation also provide lease rates and other utility costs that equal, if not surpass rewards found in other ventures.
FEDERAL TAX BENEFITS
These Can Include:
~ Employer Tax Benefits
Empowerment Zone Employment Credit
Indian Employment Credit
Work Opportunity Credit
~ New Market Tax Credit
~ Accelerated Depreciation Credit
For more information on tax benefits available to businesses who employ Native Americans, click here.
RAPID LICENSING & PERMITTING PROCESS
Pending application accuracy, licenses & permits for a cannabis / hemp cultivation or production company can be issued in as little as 60 days!
There are already many buildings available to lease that can be retrofit to suit any cannabis company's needs. With low lease rates, this can significantly reduce operating costs for the business.
UNLIMITED WATER & POWER
Near Farmington, New Mexico there is 110,630 acres of farmland watered by the Navajo Reservoir and the Navajo Indian Irrigation Project (NIIP) canal.
The United States-Navajo Nation Treaty of 1868 established stipulations to provide land and assistance for farming. In 1908, the Winter’s Doctrine reaffirmed water rights of Native Americans and in June 1962, Public Law 87-483 was authorized by US Congress for furnishing water for irrigable and arable lands in the San Juan Basin, New Mexico.
The project authorized construction the farmland and the diversion of 508,000 acre-feet of water from the Navajo Reservoir to the NIIP lands. The Navajo Agricultural Products Industry (NAPI) has an estimated 72,000 acres have been developed. NAPI currently operates three processing facilities (Bean Plant, Potato Fresh Pack and Flour Mill) with each crop grown to meet the highest quality under their own ‘Navajo Pride’ brand. Their main crops include alfalfa, corn, small grains, potatoes, and beans.
The Navajo Nation maintain 51% ownership of the San Juan River water rights and make available to the business.
For more information click here.
The Navajo Nation has access to unlimited and low-cost electricity with large, multiple facilities that produce energy. These include power plants, natural gas, and solar arrays For detailed information on the power grid click here.
FREE TRADE ZONES
A U.S. Foreign Trade Zone (FTZ) is a designated geographical area where foreign and domestic goods are treated, for tax and tariff purposes, as if they had never entered the country. Establishing an FTZ presents major cost savings to tribes through several different avenues. For example, merchandise may be held and stored in an FTZ on U.S. soil without being subject to U.S. customs duties, also known as tariffs (tax). If the goods shipped into the FTZ are then shipped to another FTZ or another country, a U.S. duty will not be assessed on the merchandise. If the goods enter the U.S., a duty will be applied, however, it may be significantly reduced.
There are four ways in which a tribe/tribal corporation can profit from establishing a FTZ, and tribes may utilize one or all of these options:
Move goods from a foreign country into the U.S.
Move goods from one foreign country to another foreign country
There are approximately 250 FTZ grantees serving locations in all 50 states and Puerto Rico, with many of those grantees serving multiple sites (including subzones).
A complete list of FTZ grantees can be found on the FTZ Board’s website
An Opportunity Zone is an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Localities qualify as Opportunity Zones if they have been nominated for that designation by the state and that nomination has been certified by the Secretary of the U.S. Treasury via his delegation authority to the Internal Revenue Service.The Navajo Nation is a fedrally recognized Opportunity Zone in the USA.
The tax benefits can include:
A temporary deferral of inclusion in taxable income for capital gains reinvested in an Opportunity Fund.
A step-up in basis for capital gains reinvested in an Opportunity Fund.
A permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in an Opportunity Fund if the investment is held for at least 10 years.
For more information on Opportunity Zones, click here.
WORLD-WIDE CANNABIS TRANSPORT
The Navajo Nation is located at the four corners of the southwest United States with access to nearby domestic and international airports, airstrips, railroad and major highways (I-40 corridor).
Native American tribes have been practicing legal international and inter-tribal trade for generations. Some examples include the Indian Tobacco Trade which allowed for the distribution of branded tobacco products to other tribes without taxation, and trading with Cuba during the height of the U.S. government enforced embargo.
Cannabis may be transferred to legal jurisdictions including Tribal, Sovereign, Interstate & International locations via:
Land: 1-40 corridor, the most commercially traveled interstate in the world.
Rail: Non-stop commercial routes along the 1-40 corridor.
Air: There are 8 airports in and around the Navajo Nation that import and export both domestic & international.
To apply for a cannabis license on the Navajo Nation in New Mexico and reap these rewards, click here.