Innovate Less Lethal to De-Escalate Tax Modernization Act

Key Points

• This bill would remove a federal excise tax on certain less-than-lethal projectile devices and their matching shells or cartridges.
• To qualify, the device must not be able to fire regular gun ammo, must not be easy to convert into a real firearm, and generally must fire under 500 feet per second.
• It sets up a process where makers can ask the Treasury Department for a yes-or-no decision within 90 days on whether a product qualifies.
• The Treasury Department would publish and update a public list each year of devices that qualify, plus a separate list of devices that are “non-lethal” but too fast to qualify under the 500 feet per second rule.
• It would also exclude qualifying less-than-lethal devices from National Firearms Act rules, which could mean fewer federal paperwork and tax requirements for those products.