Illinois Reclassifies Hemp Products as Cannabis Effective November 12

The Illinois Department of Revenue has issued a bulletin clarifying that hemp products containing more than 0.4 milligrams of total THC per container will no longer meet the state's definition of hemp. Starting November 12, 2026, these items will be classified as cannabis under Public Act 104-0463.

This change mandates that such products can only be sold through licensed cannabis dispensaries in compliance with the state's Cannabis Regulation and Tax Act. Businesses are advised to review their inventory immediately to ensure compliance with these new classification standards.

Notably, Illinois is moving forward with this enforcement date independently of the federal government. While federal enforcement for similar hemp reclassifications is currently scheduled for December 11, 2026, Illinois state authorities have confirmed they will begin enforcement a month earlier.

Failure to adhere to these new rules may result in the imposition of taxes, penalties, and interest. The state encourages businesses to consult the Illinois Hemp Act and relevant revenue bulletins to prepare for the transition.