Innovate Less Lethal to De-Escalate Tax Modernization Act
H.R. 4242, the Innovate Less Lethal to De-Escalate Tax Modernization Act, aims to modernize parts of the National Firearms Act (NFA) and related tax rules to explicitly treat certain less-than-lethal projectile devices as exempt from firearm and ammunition taxes. It creates a framework for classifying and updating which devices qualify as less-than-lethal, sets timelines for government determinations, and requires public lists and congressionally funded reporting about these devices. The overall goal is to reduce regulatory burdens on manufacturers, sellers, and users of reasonable, non-lethal weapons (such as certain projectile devices) while still providing a mechanism to review and monitor these technologies. The bill would apply these changes to articles sold after enactment. In practical terms, if enacted, many less-than-lethal projectile devices that meet the bill’s criteria would no longer be subject to the federal excise tax on firearms and ammunition, and they would be exempt from the NFA’s firearm-control requirements. The bill also directs ongoing inventoried listings and annual reporting to Congress about which devices qualify or could qualify under the rules.
Key Points
- 1Exemption from taxes for less-than-lethal projectile devices: The bill creates a tax exemption for certain less-than-lethal projectile devices, including devices on a Secretary-maintained list, and shells or cartridges designed for use in these devices.
- 2Definition of less-than-lethal projectile device: A device must meet several criteria, including not being designed to use typical handgun, rifle, or shotgun ammunition or exceed 500 feet per second, and being designed to avoid death or serious injury. It must also not be easily modified to accept common feeding devices or be usable inside a pistol grip or semiautomatic firearm.
- 3Classification process: Manufacturers, producers, or importers can request a determination from the Secretary (ATF) on whether a device satisfies the bill’s less-than-lethal criteria, with a decision due within 90 days of the request.
- 4Annual updates and reporting: The Secretary must publish an annual list of devices described in the criteria and an additional list of devices that could qualify if certain conditions were met, updating these lists as new devices emerge. The Secretary must also submit a yearly report to Congress detailing these lists and the considerations behind inclusion or exclusion.
- 5Effective date: The tax-exemption provisions apply to devices sold after enactment.
- 6NFA exemption: The bill amends the NFA to explicitly exempt these devices from NFA regulation and tax, placing them alongside antique firearms in terms of exemption language.