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Importantly, and positively, HB1427 includes a provision that would decrease the statutory tax rate on tobacco and nicotine products by 50 percent if a product is designated a Modified Risk Tobacco Product (MRTP) by the Food and Drug Administration (FDA)

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This discretion, combined with increasing legalization, makes it a popular choice, but the legal and employment risks remain high

Wells Fargo analyst Bonnie Herzog is bullish on the prospect of HNB products, estimating that Philip Morris' IQOS could displace as much as 30% of the regular cigarette business in developed markets by 2025