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House Report 119-476 - INNOVATE LESS LETHAL TO DE-ESCALATE TAX MODERNIZATION ACT
[House Report 119-476]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
2nd Session } { 119-476
======================================================================
INNOVATE LESS LETHAL TO DE-ESCALATE TAX MODERNIZATION ACT
_______
February 2, 2026.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Smith of Missouri, from the Committee on Ways and Means, submitted
the following
R E P O R T
together with
DISSENTING AND ADDITIONAL VIEWS
[To accompany H.R. 4242]
The Committee on Ways and Means, to whom was referred the
bill (H.R. 4242) to amend the Internal Revenue Code of 1986 to
modernize the National Firearms Act to account for advancements
in technology and less-than-lethal weapons, and for other
purposes, having considered the same, reports favorably thereon
with an amendment and recommends that the bill as amended do
pass.
TABLE OF CONTENTS
Page
I. SUMMARY AND BACKGROUND..........................................3
A. Purpose and Summary................................. 3
B. Background and Need for Legislation................. 4
C. Legislative History................................. 4
D. Designated Hearing.................................. 5
II. EXPLANATION OF THE BILL.........................................5
A. Exemption of Certain Less-than-Lethal Projectile
Devices from the Firearms and Ammunition Excise Tax
and the National Firearms Act (secs. 2 and 3 of the
bill and secs. 4182 and 5845 of the Code).......... 5
B. Explanation of Provisions........................... 7
C. Effective Date...................................... 8
III. VOTES OF THE COMMITTEE..........................................8
IV. BUDGET EFFECTS OF THE BILL.....................................10
A. Committee Estimate of Budgetary Effects............. 10
B. Statement Regarding New Budget Authority and Tax
Expenditures Budget Authority...................... 10
C. Cost Estimate Prepared by the Congressional Budget
Office............................................. 10
V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE.....10
A. Committee Oversight Findings and Recommendations.... 10
B. Statement of General Performance Goals and
Objectives......................................... 10
C. Applicability of House Rule XXI, Clause 5(b)........ 10
D. Information Relating to Unfunded Mandates........... 10
E. Congressional Earmarks, Limited Tax Benefits, and
Limited Tariff Benefits............................ 11
F. Duplication of Federal Programs..................... 11
G. Tax Complexity Analysis............................. 11
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED..........11
VII. DISSENTING VIEWS & ADDITIONAL VIEWS............................17
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Innovate Less Lethal to De-Escalate
Tax Modernization Act''.
SEC. 2. EXEMPTION OF CERTAIN LESS-THAN-LETHAL PROJECTILE DEVICES FROM
FIREARMS AND AMMUNITION TAX.
(a) In General.--Section 4182 of the Internal Revenue Code of 1986 is
amended--
(1) by redesignating subsection (d) as subsection (e), and
(2) by inserting after subsection (c) the following new
subsection:
``(d) Less-than-Lethal Projectile Devices.--
``(1) In general.--The tax imposed by section 4181 shall not
apply to--
``(A) any less-than-lethal projectile device,
``(B) any device contained on the most recent list
made available by the Secretary under paragraph (4)(B),
and
``(C) any shell or cartridge that meets the
requirement of paragraph (2)(B) and is designed for use
in a device referred to in subparagraph (A) or (B).
``(2) Less-than-lethal projectile device.--The term `less-
than-lethal projectile device' means a device that--
``(A) is not designed or intended to expel, and may
not be readily converted to accept and discharge--
``(i) ammunition commonly used in handguns,
rifles, or shotguns, or
``(ii) any other projectile at a velocity
exceeding 500 feet per second,
``(B) is designed and intended to be used in a manner
that is not likely to cause death or serious bodily
injury, and
``(C) does not accept, and is not able to be readily
modified to accept, ammunition feeding devices--
``(i) loaded through the inside of a pistol
grip, or
``(ii) commonly used in semiautomatic
firearms.
``(3) Request for classification.--Pursuant to a request made
by the manufacturer, producer, or importer of a device for a
determination as to whether such device satisfies the
requirements under paragraph (2), the Secretary shall make such
determination not later than 90 days after the date of receipt
of such request.
``(4) Annual review of new and emerging technologies.--
``(A) List of less-than-lethal projectile devices.--
The Secretary shall make publicly available a list of
devices that the Secretary has determined are described
in paragraph (2) and shall update such list annually to
take into account new devices.
``(B) List of non-lethal devices the projectiles of
which exceed 500 feet per second.--
``(i) In general.--The Secretary shall--
``(I) make publicly available a list
of devices that the Secretary has
determined are not described in
paragraph (2) but would be so described
if such paragraph were applied without
regard to subparagraph (A)(ii) thereof,
and
``(II) update such list annually to
take into account new devices.
``(ii) Report to congress.--The Secretary
shall annually submit a written report to the
Committee on Ways and Means of the House of
Representatives and the Committee on Finance of
the Senate regarding the annual list of devices
described in clause (i), including a copy of
such list, a description of the devices that
were considered for inclusion on such list, and
the reasons for including or excluding such
devices from such list.''.
(b) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
articles sold by the manufacturer, producer, or importer after
the date of the enactment of this Act.
(2) Requests for determinations.--Section 4182(d)(3) of the
Internal Revenue Code of 1986 (as added by this section) shall
apply to requests received after the date of the enactment of
this Act, except that any request under such section which is
received during the 180-day period beginning on the date of the
enactment of this Act shall be treated for purposes of such
section as received as of the close of such period.
SEC. 3. EXEMPTION OF CERTAIN LESS-THAN-LETHAL PROJECTILE DEVICES FROM
NATIONAL FIREARMS ACT.
Section 5845(a) of the Internal Revenue Code of 1986 is amended by
striking ``an antique firearm or'' and inserting ``any antique firearm,
any less-than-lethal projectile device (as defined in section
4182(d)(2)), any device referred to in section 4182(d)(1)(B), or''.
I. SUMMARY AND BACKGROUND
A. Purpose and Summary
The bill, H.R. 4242, the ``Innovate Less Lethal to De-
Escalate Tax Modernization Act,'' as ordered reported by the
Committee on Ways and Means on December 10, 2025.
The proposal amends the Code to provide that the firearms
and ammunition excise tax does not apply to (1) a less-than-
lethal projectile device, (2) a device contained on the most
recent list made publicly available by the Secretary of non-
lethal devices with projectiles exceeding 500 feet per second
(as described below), and (3) shells or cartridges that (a) are
designed and intended to be used in a manner that is not likely
to cause death or serious bodily injury and (b) are designed
for use in a device described in (1) or (2). The term ``less-
than-lethal projectile device'' is a device that (A) is not
designed or intended to expel, and may not be readily converted
to accept and discharge, ammunition commonly used in handguns,
rifles, or shotguns, or any other projectile at a velocity
exceeding 500 feet per second; (B) is designed and intended to
be used in a manner that is not likely to cause death or
serious bodily injury; and (C) does not accept, and is not able
to be readily modified to accept, ammunition feeding devices
loaded through the inside of a pistol grip or commonly used in
semiautomatic firearms.
The Secretary must make a determination of whether a device
satisfies the requirements to be a less-than-lethal projectile
device not later than 90 days after the date of receipt of a
request for a determination by the manufacturer, producer, or
importer of the device. The Secretary must make publicly
available a list of devices that the Secretary has determined
meet the requirements of being a less-than-lethal projectile
device, and the Secretary must update the list annually to take
into account new devices. In addition, and as referenced above,
the Secretary must make publicly available a list of devices
that the Secretary has determined would meet the requirements
of less-than-lethal projectile devices, except that the devices
are designed or intended to expel, or may be readily converted
to accept and discharge, projectiles (other than ammunition
commonly used in handguns, rifles, or shotguns) at a velocity
exceeding 500 feet per second (the ``exempt devices list'').
The Secretary is directed to submit an annual written report to
the House Ways and Means Committee and the Senate Finance
Committee regarding the exempt devices list, including a copy
of the list, a description of the devices that were considered
for inclusion on the list, and the reasons for including or
excluding the devices from the list.
The proposal also modifies the definition of ``firearm''
for purposes of the NFA. The proposal provides that less-than-
lethal projectile devices and devices contained on the exempt
devices list are not firearms for purposes of the NFA and thus
are not subject to the occupational, transfer, or making taxes.
The term ``less-than-lethal projectile devices''' has the same
meaning given that term under the firearms and ammunition
excise tax, as amended under the proposal.
B. Background and Need for Legislation
Generally, the Code imposes an excise tax on the sales by
the manufacturer, producer, or importer of certain firearms and
ammunition. Pistols and revolvers are generally taxable at 10
percent of sales price. Firearms other than pistols and
revolvers, shells, and cartridges are generally taxable at 11
percent of sales price. For this purpose, a firearm is a
portable weapon, such as a rifle, carbine, machine gun,
shotgun, or fowling piece, from which a shot, bullet, or other
projectile may be discharged by an explosive.
The National Firearms Act (the ``NFA''), requires
importers, manufacturers, and dealers in firearms to pay a
special occupational tax and register with the Treasury, and
also imposes excise taxes on the transfer and making of
firearms.
Certain less-than-lethal devices are currently defined
under federal regulation as ``firearms.'' As such, they are
subject to the Firearms and Ammunition Excise Tax (FAET) and
the National Firearms Act of 1934 (NFA). Due to outdated and
misaligned regulatory standards, innovative less-than-lethal
devices and technologies are therefore subject to taxes that
were never intended to apply to them.
Additionally, the inconsistent classification and
regulation of less-than-lethal devices is producing delays,
regulatory burdens, and increased costs. Innovative less-than-
lethal technology is paramount for protecting the safety of our
communities. As technology continues to evolve, our tax code
should be harmonized to meet growing needs that prioritize
lifesaving innovations and keeping our communities safe.
C. Legislative History
Background
H.R. 4242 was introduced on June 27, 2025, and was referred
to the Committee on Ways and Means.
Committee Hearings
On May 20, 2024, the Committee held Tax Subcommittee
Hearing on Tax Subcommittee Field Hearing on Creating More
Opportunity and Prosperity in the American Rust Belt. On
January 22, 2025, the Committee held a Full Committee Member
Day Hearing on matters within the Committee's jurisdiction.
Committee Action
The Committee on Ways and Means marked up H.R. 4242, the
``Innovate Less Lethal to De-Escalate Tax Modernization Act,''
on December 10, 2025, and ordered the bill, as amended,
favorably reported (with a quorum being present).
D. Designated Hearing
Pursuant to clause 3(c)(6) of rule XIII, the following
hearings were used to develop and consider H.R. 4242:
Committee on Ways and Means Tax Subcommittee Field Hearing
on Creating More Opportunity and Prosperity in the American
Rust Belt
Committee on Ways and Means Member Day Hearing on matters
within the Committee's jurisdiction
II. EXPLANATION OF THE BILL
A. Exemption of Certain Less-Than-Lethal Projectile Devices From the
Firearms and Ammunition Excise Tax and the National Firearms Act (secs.
2 and 3 of the bill and secs. 4182 and 5845 of the Code)
PRESENT LAW
Generally, the Code imposes an excise tax on the sales by
the manufacturer, producer, or importer of certain firearms and
ammunition.\1\ Pistols and revolvers are generally taxable at
10 percent of sales price. Firearms other than pistols and
revolvers, shells, and cartridges are generally taxable at 11
percent of sales price.\2\ For this purpose, a firearm is a
portable weapon, such as a rifle, carbine, machine gun,
shotgun, or fowling piece, from which a shot, bullet, or other
projectile may be discharged by an explosive.\3\
---------------------------------------------------------------------------
\1\Sec. 4181.
\2\Ibid.
\3\See 27 C.F.R. sec. 53.11 (2006).
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However, the excise tax does not apply to machine guns and
short barreled firearms.\4\ In addition, firearms, pistols, and
revolvers manufactured, produced, or imported by a person who
in aggregate manufactures, produces, or imports less than 50
firearms, pistols, and revolvers during the calendar year are
exempt from the excise tax.\5\ Sales of firearms, pistols,
revolvers, shells, and cartridges to the Department of Defense,
the Coast Guard, State and local governments, nonprofit
educational organizations, and for use in vessels and aircraft
are also exempt from the excise tax.\6\
---------------------------------------------------------------------------
\4\Sec. 4182(a).
\5\Sec. 4182(c).
\6\Secs. 4182(b) and 4221(a).
---------------------------------------------------------------------------
The National Firearms Act (the ``NFA''),\7\ which is
codified as chapter 53 of the Code, requires importers,
manufacturers, and dealers in firearms to pay a special
occupational tax and register with the Treasury, and also
imposes excise taxes on the transfer and making of firearms.\8\
Generally, in order to engage in business, an importer or
manufacturer of firearms is required to pay a special
occupational tax of $1,000 for each year and for each place of
business; a dealer of firearms is required to pay a special
occupational tax of $500 for each year and for each place of
business.\9\ However, persons who conduct businesses
exclusively with, or on behalf of, the United States or any
department or agency of the United States are generally exempt
from the special occupational tax.\10\ Generally, importers,
manufacturers, and dealers in firearms are required to register
with the Secretary of the Treasury (the ``Secretary'') in each
internal revenue district in which the business is carried
on.\11\
---------------------------------------------------------------------------
\7\Pub. L. No. 73-474.
\8\Secs. 5801 et seq.
\9\Sec. 5801(a).
\10\Sec. 5851.
\11\Sec. 5802.
---------------------------------------------------------------------------
For calendar quarters beginning prior to January 1, 2026,
an excise tax of $200 is generally imposed on each firearm\12\
that is transferred (``transfer tax'') or made (``making
tax'').\13\ However, a lower excise tax of $5 is imposed on
each transfer of a firearm classified as any other weapon.\14\
For calendar quarters beginning on or after January 1, 2026,
Public Law 119-21 reduced to $0 the transfer and making tax for
certain firearms.\15\ The transfer tax on firearms is reduced
from $200 to $0 for each firearm transferred, except for
machine guns and destructive devices. The transfer tax on
firearms classified as any other weapon is reduced from $5 to
$0. The making tax on firearms is reduced from $200 to $0 for
each firearm made, except for machine guns and destructive
devices.\16\
---------------------------------------------------------------------------
\12\Sec. 5845(a) (definition of ``firearm''). The term ``firearm''
includes machine guns, certain rifles and shotguns, silencers, and
weapons classified as any other weapon.
\13\Secs. 5811 and 5821.
\14\As defined in sec. 5845(e). The term ``any other weapon''
includes, for example, a weapon or device capable of being concealed on
the person from which a shot can be discharged through the energy of an
explosive and a pistol or revolver having a barrel with a smooth bore
designed or redesigned to fire a fixed shotgun shell. The term does not
include a pistol or a revolver having a rifled bore or a weapon that is
designed, made, or intended to be fired from the shoulder and not
capable of firing fixed ammunition.
\15\Pub. L. No. 119-21, sec. 70436. Section 70436 is effective for
calendar quarters beginning more than 90 days after the date of
enactment of Public Law No. 119-21 (July 4, 2025). Therefore, the
provision is effective for calendar quarters beginning on or after
January 1, 2026.
\16\Pub. L. No. 119-21, sec. 70436.
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In addition, a firearm may be transferred to the United
States, or a department, independent establishment, or agency
of the United States, without payment of the transfer tax.\17\
A firearm may also be transferred or made without payment of
the transfer tax or making tax, respectively, if the firearm is
transferred or made by or on behalf of a State, possession of
the United States, any political subdivision, or any official
police organization of a government entity engaged in criminal
investigations.\18\ Further, a firearm registered to a person
that is qualified under the NFA to engage in business as an
importer, manufacturer, or dealer may be transferred without
payment of transfer tax to any other person qualified to
manufacture, import, or deal in that type of firearm.\19\ A
manufacturer qualified under the NFA may also make the type of
firearm which the manufacturer is qualified to manufacture
without payment of the making tax.\20\
---------------------------------------------------------------------------
\17\Sec. 5852(a).
\18\Sec. 5853.
\19\Sec. 5852(d).
\20\Sec. 5852(c).
---------------------------------------------------------------------------
Under the NFA, a ``firearm'' means (1) a shotgun having a
barrel or barrels of less than 18 inches in length; (2) a
weapon made from a shotgun if such weapon as modified has an
overall length of less than 26 inches or a barrel or barrels of
less than 18 inches in length; (3) a rifle having a barrel or
barrels of less than 16 inches in length; (4) a weapon made
from a rifle if such weapon as modified has an overall length
of less than 26 inches or a barrel or barrels of less than 16
inches in length; (5) any other weapon;\21\ (6) a machine gun;
(7) a silencer; and (8) a destructive device. The term
``firearm'' does not include an antique firearm or any device
(other than a machine gun or destructive device) which,
although designed as a weapon, the Secretary finds by reason of
the date of its manufacture, value, design, and other
characteristics is primarily a collector's item and is not
likely to be used as a weapon.\22\
---------------------------------------------------------------------------
\21\The term ``any other weapon'' includes weapons or devices
capable of being concealed on the person from which a shot can be
discharged through the energy of an explosive, certain pistols or
revolvers having a barrel with a smooth bore designed or redesigned to
fire a fixed shotgun shell, and certain weapons with combination
shotgun and rifle barrels.
\22\Sec. 5845(a).
---------------------------------------------------------------------------
REASONS FOR CHANGE
The Committee believes that innovative less-than-lethal
projectile devices are necessary for protecting our communities
and should be promoted. However, the Committee is concerned
that current and future non-lethal projectile devices may be
subject to Federal excise taxes and regulations, which may
stifle the development, production, and availability of these
important devices. The provision addresses these concerns by
providing that less-than-lethal projectile devices, and similar
devices that the Secretary identifies on a publicly available
list, are exempted from the firearms and ammunition excise tax
and the National Firearms Act.
B. Explanation of Provisions
Exemption of certain less-than-lethal projectile devices from the
firearms and ammunition excise tax
The provision amends the Code to provide that the firearms
and ammunition excise tax does not apply to (1) a less-than-
lethal projectile device, (2) a device contained on the most
recent list made publicly available by the Secretary of less-
than-lethal devices with projectiles exceeding 500 feet per
second (as described below), and (3) shells or cartridges that
(a) are designed and intended to be used in a manner that is
not likely to cause death or serious bodily injury and (b) are
designed for use in a device described in (1) or (2). The term
``less-than-lethal projectile device'' is a device that (A) is
not designed or intended to expel, and may not be readily
converted to accept and discharge, ammunition commonly used in
handguns, rifles, or shotguns, or any other projectile at a
velocity exceeding 500 feet per second; (B) is designed and
intended to be used in a manner that is not likely to cause
death or serious bodily injury; and (C) does not accept, and is
not able to be readily modified to accept, ammunition feeding
devices loaded through the inside of a pistol grip or commonly
used in semiautomatic firearms.
The Secretary must make a determination of whether a device
satisfies the requirements to be a less-than-lethal projectile
device not later than 90 days after the date of receipt of a
request for a determination by the manufacturer, producer, or
importer of the device. The Secretary must make publicly
available a list of devices that the Secretary has determined
meet the requirements of being a less-than-lethal projectile
device, and the Secretary must update the list annually to take
into account new devices. In addition, and as referenced above,
the Secretary must make publicly available a list of devices
that the Secretary has determined would meet the requirements
of less-than-lethal projectile devices, except that the devices
are designed or intended to expel, or may be readily converted
to accept and discharge, projectiles (other than ammunition
commonly used in handguns, rifles, or shotguns) at a velocity
exceeding 500 feet per second (the ``additional exempt devices
list''). The Secretary is directed to submit an annual written
report to the House Ways and Means Committee and the Senate
Finance Committee regarding the additional exempt devices list,
including a copy of the list, a description of the devices that
were considered for inclusion on the list, and the reasons for
including or excluding the devices from the list.
Exemption of certain less-than-lethal projectile devices from the
National Firearms Act
The provision modifies the definition of ``firearm'' for
purposes of the NFA. The provision provides that less-than-
lethal projectile devices and devices contained on the
additional exempt devices list are not firearms for purposes of
the NFA and thus are not subject to the occupational, transfer,
or making taxes. The term ``less-than-lethal projectile
devices'' has the same meaning given that term under the
firearms and ammunition excise tax, as amended under the
provision.
C. Effective Date
The provision is generally effective on the date of
enactment. The part of the provision relating to the exemption
of certain devices from the firearms and ammunition excise tax
generally applies to articles sold by the manufacturer,
producer, or importer after the date of enactment. However,
with respect to requests to Treasury for determinations of
less-than-lethal projectile devices, the provision applies to
requests received after the date of enactment, except that
requests received during the 180-day period beginning on the
date of enactment are treated as received as of the close of
that period.
III. VOTES OF THE COMMITTEE
In compliance with the Rules of the House Representatives,
the following statement is made concerning the vote of the
Committee on Ways and Means during the markup consideration of
H.R. 4242, the ``Innovate Less Lethal to De-Escalate Tax
Modernization Act'', on December 10, 2025.
The vote on the amendment offered by Mr. Larson to the
amendment in the nature of a substitute to H.R. 4242, which
would strike section 3 was not agreed to by a roll call vote of
17 yeas to 23 nays (with a quorum being present). The vote was
as follows:
----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Smith (MO)................ ........ X ......... Mr. Neal........ X ......... .........
Mr. Buchanan.................. ........ X ......... Mr. Doggett..... X ......... .........
Mr. Smith (NE)................ ........ X ......... Mr. Thompson.... X ......... .........
Mr. Kelly..................... ........ X ......... Mr. Larson...... X ......... .........
Mr. Schweikert................ ........ X ......... Mr. Davis....... X ......... .........
Mr. LaHood.................... ........ X ......... Ms. Sanchez..... ........ ......... .........
Mr. Arrington................. ........ ......... ......... Ms. Sewell...... X ......... .........
Mr. Estes..................... ........ X ......... Ms. DelBene..... X ......... .........
Mr. Smucker................... ........ ......... ......... Ms. Chu......... X ......... .........
Mr. Hern...................... ........ X ......... Ms. Moore (WI).. X ......... .........
Mrs. Miller (WV).............. ........ X ......... Mr. Boyle....... X ......... .........
Dr. Murphy.................... ........ X ......... Mr. Beyer....... X ......... .........
Mr. Kustoff................... ........ X ......... Mr. Evans....... X ......... .........
Mr. Fitzpatrick............... ........ ......... ......... Mr. Schneider... X ......... .........
Mr. Steube.................... ........ X ......... Mr. Panetta..... X ......... .........
Ms. Tenney.................... ........ X ......... Mr. Gomez....... X ......... .........
Mrs. Fischbach................ ........ X ......... Mr. Horsford.... X ......... .........
Mr. Moore (UT)................ ........ X ......... Ms. Plaskett.... ........ ......... .........
Ms. Van Duyne................. ........ X ......... Mr. Suozzi...... X ......... .........
Mr. Feenstra.................. ........ X .........
Ms. Malliotakis............... ........ X .........
Mr. Carey..................... ........ X .........
Mr. Yakym..................... ........ X .........
Mr. Miller (OH)............... ........ X .........
Mr. Bean...................... ........ X .........
Mr. Moran..................... ........ X .........
----------------------------------------------------------------------------------------------------------------
In compliance with the Rules of the House of
Representatives, the following statement is made concerning the
vote of the Committee on Ways and Means during the markup
consideration of H.R. 4242, the ``Innovate Less Lethal to De-
Escalate Tax Modernization Act,'' on December 10, 2025.
H.R. 4242 was ordered favorably reported to the House of
Representatives as amended by a roll call vote of 26 yeas to 15
nays (with a quorum being present). The vote was as follows:
----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Smith (MO)................ X ......... ......... Mr. Neal........ ........ X .........
Mr. Buchanan.................. X ......... ......... Mr. Doggett..... ........ X .........
Mr. Smith (NE)................ X ......... ......... Mr. Thompson.... ........ X .........
Mr. Kelly..................... X ......... ......... Mr. Larson...... ........ X .........
Mr. Schweikert................ X ......... ......... Mr. Davis....... ........ X .........
Mr. LaHood.................... X ......... ......... Ms. Sanchez..... ........ ......... .........
Mr. Arrington................. X ......... ......... Ms. Sewell...... ........ X .........
Mr. Estes..................... X ......... ......... Ms. DelBene..... ........ X .........
Mr. Smucker................... ........ ......... ......... Ms. Chu......... ........ X .........
Mr. Hern...................... X ......... ......... Ms. Moore (WI).. ........ X .........
Mrs. Miller (WV).............. X ......... ......... Mr. Boyle....... X ......... .........
Dr. Murphy.................... X ......... ......... Mr. Beyer....... ........ X .........
Mr. Kustoff................... X ......... ......... Mr. Evans....... ........ X .........
Mr. Fitzpatrick............... ........ ......... ......... Mr. Schneider... ........ X .........
Mr. Steube.................... X ......... ......... Mr. Panetta..... X ......... .........
Ms. Tenney.................... X ......... ......... Mr. Gomez....... ........ X .........
Mrs. Fischbach................ X ......... ......... Mr. Horsford.... ........ X .........
Mr. Moore (UT)................ X ......... ......... Ms. Plaskett.... ........ ......... .........
Ms. Van Duyne................. X ......... ......... Mr. Suozzi...... ........ X .........
Mr. Feenstra.................. X ......... .........
Ms. Malliotakis............... X ......... .........
Mr. Carey..................... X ......... .........
Mr. Yakym..................... X ......... .........
Mr. Miller (OH)............... X ......... .........
Mr. Bean...................... X ......... .........
Mr. Moran..................... X ......... .........
----------------------------------------------------------------------------------------------------------------
IV. BUDGET EFFECTS OF THE BILL
A. Committee Estimate of Budgetary Effects
In compliance with clause 3(d) of rule XIII of the Rules of
the House of Representatives, the following statement is made
concerning the effects on the budget of the bill, H.R. 4242, as
reported.
The provision is estimated to reduce Federal receipts by
less than $500,000 over the budget window.
B. Statement Regarding New Budget Authority and
Tax Expenditures Budget Authority
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee states that the
bill involves no new or increased budget authority.
C. Cost Estimate Prepared by the
Congressional Budget Office
The Congressional Budget Act of 1974, as amended stipulates
that revenue estimates provided by the staff of the Joint
Committee on Taxation (``JCT'') will be the official estimates
for all tax legislation considered by Congress. As such CBO
incorporates these estimates into its cost estimates of the
effects of the legislation. The estimates for the revenue
provisions of H.R. 4242, as reported were provided by JCT (see
Part IV, A).
V. OTHER MATTERS TO BE DISCUSSED UNDER
THE RULES OF THE HOUSE
A. Committee Oversight Findings and Recommendations
With respect to clause 3(c)(1) of rule XIII of the Rules of
the House of Representatives, the Committee made findings and
recommendations that are reflected in this report.
B. Statement of General Performance Goals and Objectives
With respect to clause 3(c)(4) of rule XIII of the Rules of
the House of Representatives, the Committee advises that the
bill does not authorize funding, so no statement of general
performance goals and objectives is required.
C. Applicability of House Rule XXI, Clause 5(b)
Rule XXI 5(b) of the Rules of the House of Representatives
provides, in part, that ``A bill or joint resolution,
amendment, or conference report carrying a Federal income tax
rate increase may not be considered as passed or agreed to
unless so determined by a vote of not less than three-fifths of
the Members voting, a quorum being present.''
The Committee has carefully reviewed the bill, and states
that the bill does not provide such a Federal income tax rate
increase.
D. Information Relating to Unfunded Mandates
This information is provided in accordance with section 423
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
The Committee has determined that the bill does not contain
Federal mandates on the private sector. The Committee has
determined that the bill does not impose a Federal
intergovernmental mandate on State, local, or tribal
governments.
E. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the bill, and states that the provisions of
the bill do not contain any congressional earmarks, limited tax
benefits, or limited tariff benefits within the meaning of the
rule.
F. Duplication of Federal Programs
In compliance with clause 3(c)(5) of rule XIII of the Rules
of the House of Representatives, the Committee states that no
provision of the bill establishes or reauthorizes: (1) a
program of the Federal Government known to be duplicative of
another Federal program; (2) a program included in any report
from the Government Accountability Office to Congress pursuant
to section 21 of Public Law 111-139; or (3) a program related
to a program identified in the most recent Catalog of Federal
Domestic Assistance, published pursuant to the Federal Program
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No.
98-169).
G. Tax Complexity Analysis
Section 4022(b) of the Internal Revenue Service Reform and
Restructuring Act of 1998 (``IRS Reform Act'') requires the
staff of the Joint Committee on Taxation (in consultation with
the Internal Revenue Service and the Treasury Department) to
provide a tax complexity analysis. The complexity analysis is
required for all legislation reported by the Senate Committee
on Finance, the House Committee on Ways and Means, or any
committee of conference if the legislation includes a provision
that directly or indirectly amends the Internal Revenue Code
and has widespread applicability to individuals or small
businesses. The staff of the Joint Committee on Taxation has
determined that there are no provisions that are of widespread
applicability to individuals or small businesses.
VI. CHANGES IN EXISTING LAW MADE BY THE BILL,
AS REPORTED
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
INTERNAL REVENUE CODE OF 1986
* * * * * * *
Subtitle D--Miscellaneous Excise Taxes
* * * * * * *
CHAPTER 32--MANUFACTURERS EXCISE TAXES
* * * * * * *
Subchapter D--RECREATIONAL EQUIPMENT
* * * * * * *
PART III--FIREARMS
* * * * * * *
SEC. 4182. EXEMPTIONS.
(a) Machine Guns and Short Barrelled Firearms.--The tax
imposed by section 4181 shall not apply to any firearm on which
the tax provided by section 5811 has been paid. For purposes of
the preceding sentence, any firearm described in section
5811(a)(2) shall be deemed to be a firearm on which the tax
provided by section 5811 has been paid.
(b) Sales to Defense Department.--No firearms, pistols,
revolvers, shells, and cartridges purchased with funds
appropriated for the military department shall be subject to
any tax imposed on the sale or transfer of such articles.
(c) Small Manufacturers, Etc.--
(1) In general.--The tax imposed by section 4181
shall not apply to any pistol, revolver, or firearm
described in such section if manufactured, produced, or
imported by a person who manufactures, produces, and
imports less than an aggregate of 50 of such articles
during the calendar year.
(2) Controlled groups.--All persons treated as a
single employer for purposes of subsection (a) or (b)
of section 52 shall be treated as one person for
purposes of paragraph (1).
(d) Less-than-Lethal Projectile Devices.--
(1) In general.--The tax imposed by section 4181
shall not apply to--
(A) any less-than-lethal projectile device,
(B) any device contained on the most recent
list made available by the Secretary under
paragraph (4)(B), and
(C) any shell or cartridge that meets the
requirement of paragraph (2)(B) and is designed
for use in a device referred to in subparagraph
(A) or (B).
(2) Less-than-lethal projectile device.--The term
``less-than-lethal projectile device'' means a device
that--
(A) is not designed or intended to expel, and
may not be readily converted to accept and
discharge--
(i) ammunition commonly used in
handguns, rifles, or shotguns, or
(ii) any other projectile at a
velocity exceeding 500 feet per second,
(B) is designed and intended to be used in a
manner that is not likely to cause death or
serious bodily injury, and
(C) does not accept, and is not able to be
readily modified to accept, ammunition feeding
devices--
(i) loaded through the inside of a
pistol grip, or
(ii) commonly used in semiautomatic
firearms.
(3) Request for classification.--Pursuant to a
request made by the manufacturer, producer, or importer
of a device for a determination as to whether such
device satisfies the requirements under paragraph (2),
the Secretary shall make such determination not later
than 90 days after the date of receipt of such request.
(4) Annual review of new and emerging technologies.--
(A) List of less-than-lethal projectile
devices.--The Secretary shall make publicly
available a list of devices that the Secretary
has determined are described in paragraph (2)
and shall update such list annually to take
into account new devices.
(B) List of non-lethal devices the
projectiles of which exceed 500 feet per
second.--
(i) In general.--The Secretary
shall--
(I) make publicly available a
list of devices that the
Secretary has determined are
not described in paragraph (2)
but would be so described if
such paragraph were applied
without regard to subparagraph
(A)(ii) thereof, and
(II) update such list
annually to take into account
new devices.
(ii) Report to congress.--The
Secretary shall annually submit a
written report to the Committee on Ways
and Means of the House of
Representatives and the Committee on
Finance of the Senate regarding the
annual list of devices described in
clause (i), including a copy of such
list, a description of the devices that
were considered for inclusion on such
list, and the reasons for including or
excluding such devices from such list.
[(d)] (e) Records.--Notwithstanding the provisions of
sections 922(b)(5) and 923(g) of title 18, United States Code,
no person holding a Federal license under chapter 44 of title
18, United States Code, shall be required to record the name,
address, or other information about the purchaser of shotgun
ammunition, ammunition suitable for use only in rifles
generally available in commerce, or component parts for the
aforesaid types of ammunition.
* * * * * * *
Subtitle E--Alcohol, Tobacco, and Certain Other Excise Taxes
* * * * * * *
CHAPTER 53--MACHINE GUNS, DESTRUCTIVE DEVICES, AND CERTAIN OTHER
FIREARMS
* * * * * * *
Subchapter B--GENERAL PROVISIONS AND EXEMPTIONS
* * * * * * *
PART I--GENERAL PROVISIONS
* * * * * * *
SEC. 5845. DEFINITIONS.
For the purpose of this chapter--
(a) Firearm.--The term ``firearm'' means (1) a shotgun having
a barrel or barrels of less than 18 inches in length; (2) a
weapon made from a shotgun if such weapon as modified has an
overall length of less than 26 inches or a barrel or barrels of
less than 18 inches in length; (3) a rifle having a barrel or
barrels of less than 16 inches in length; (4) a weapon made
from a rifle if such weapon as modified has an overall length
of less than 26 inches or a barrel or barrels of less than 16
inches in length; (5) any other weapon, as defined in
subsection (e); (6) a machinegun; (7) any silencer (as defined
in section 921 of title 18, United States Code); and (8) a
destructive device. The term ``firearm'' shall not include [an
antique firearm or] any antique firearm, any less-than-lethal
projectile device (as defined in section 4182(d)(2)), any
device referred to in section 4182(d)(1)(B), or any device
(other than a machinegun or destructive device) which, although
designed as a weapon, the Secretary finds by reason of the date
of its manufacture, value, design, and other characteristics is
primarily a collector's item and is not likely to be used as a
weapon.
(b) Machinegun.--The term ``machinegun'' means any weapon
which shoots, is designed to shoot, or can be readily restored
to shoot, automatically more than one shot, without manual
reloading, by a single function of the trigger. The term shall
also include the frame or receiver of any such weapon, any part
designed and intended solely and exclusively, or combination of
parts designed and intended, for use in converting a weapon
into a machinegun, and any combination of parts from which a
machinegun can be assembled if such parts are in the possession
or under the control of a person.
(c) Rifle.--The term ``rifle'' means a weapon designed or
redesigned, made or remade, and intended to be fired from the
shoulder and designed or redesigned and made or remade to use
the energy of the explosive in a fixed cartridge to fire only a
single projectile through a rifled bore for each single pull of
the trigger, and shall include any such weapon which may be
readily restored to fire a fixed cartridge.
(d) Shotgun.--The term ``shotgun'' means a weapon designed or
redesigned, made or remade, and intended to be fired from the
shoulder and designed or redesigned and made or remade to use
the energy of the explosive in a fixed shotgun shell to fire
through a smooth bore either a number of projectiles (ball
shot) or a single projectile for each pull of the trigger, and
shall include any such weapon which may be readily restored to
fire a fixed shotgun shell.
(e) Any other weapon.--The term ``any other weapon'' means
any weapon or device capable of being concealed on the person
from which a shot can be discharged through the energy of an
explosive, a pistol or revolver having a barrel with a smooth
bore designed or redesigned to fire a fixed shotgun shell,
weapons with combination shotgun and rifle barrels 12 inches or
more, less than 18 inches in length, from which only a single
discharge can be made from either barrel without manual
reloading, and shall include any such weapon which may be
readily restored to fire. Such term shall not include a pistol
or a revolver having a rifled bore, or rifled bores, or weapons
designed, made, or intended to be fired from the shoulder and
not capable of firing fixed ammunition.
(f) Destructive device.--The term ``destructive device''
means (1) any explosive, incendiary, or poison gas (A) bomb,
(B) grenade, (C) rocket having a propellent charge of more than
four ounces, (D) missile having an explosive or incendiary
charge of more than one-quarter ounce, (E) mine, or (F) similar
device; (2) any type of weapon by whatever name known which
will, or which may be readily converted to, expel a projectile
by the action of an explosive or other propellant, the barrel
or barrels of which have a bore of more than one-half inch in
diameter, except a shotgun or shotgun shell which the Secretary
finds is generally recognized as particularly suitable for
sporting purposes; and (3) any combination of parts either
designed or intended for use in converting any device into a
destructive device as defined in subparagraphs (1) and (2) and
from which a destructive device may be readily assembled. The
term ``destructive device'' shall not include any device which
is neither designed nor redesigned for use as a weapon; any
device, although originally designed for use as a weapon, which
is redesigned for use as a signaling, pyrotechnic, line
throwing, safety, or similar device; surplus ordnance sold,
loaned, or given by the Secretary of the Army pursuant to the
provisions of section 7684(2), 7685, or 7686 of title 10,
United States Code; or any other device which the Secretary
finds is not likely to be used as a weapon, or is an antique or
is a rifle which the owner intends to use solely for sporting
purposes.
(g) Antique firearm.--The term ``antique firearm'' means any
firearm not designed or redesigned for using rim fire or
conventional center fire ignition with fixed ammunition and
manufactured in or before 1898 (including any matchlock,
flintlock, percussion cap, or similar type of ignition system
or replica thereof, whether actually manufactured before or
after the year 1898) and also any firearm using fixed
ammunition manufactured in or before 1898, for which ammunition
is no longer manufactured in the United States and is not
readily available in the ordinary channels of commercial trade.
(h) Unserviceable firearm.--The term ``unserviceable
firearm'' means a firearm which is incapable of discharging a
shot by means of an explosive and incapable of being readily
restored to a firing condition.
(i) Make.--The term ``make'', and the various derivatives of
such word, shall include manufacturing (other than by one
qualified to engage in such business under this chapter),
putting together, altering, any combination of these, or
otherwise producing a firearm.
(j) Transfer.--The term ``transfer'' and the various
derivatives of such word, shall include selling, assigning,
pledging, leasing, loaning, giving away, or otherwise disposing
of.
(k) Dealer.--The term ``dealer'' means any person, not a
manufacturer or importer, engaged in the business of selling,
renting, leasing, or loaning firearms and shall include
pawnbrokers who accept firearms as collateral for loans.
(l) Importer.--The term ``importer'' means any person who is
engaged in the business of importing or bringing firearms into
the United States.
(m) Manufacturer.--The term ``manufacturer'' means any person
who is engaged in the business of manufacturing firearms.
* * * * * * *
VII. DISSENTING AND ADDITIONAL VIEWS
DISSENTING VIEWS
Last year, Republicans marked up a similar bill that would
ensure more dangerous weapons would end up in the hands of
individuals who should not possess them. That bill reflected a
poorly executed attempt at what may have been a well-
intentioned goal to help law enforcement and protect the
public. Republicans claimed at the time that the bill is
designed to lower barriers for law enforcement to access
devices such as TASERs by redefining ``firearm'' in the Gun
Control Act of 1968 to make less-than-lethal weapons more
readily available. However, law enforcement officers are
already exempt from much of the Gun Control Act and are able to
procure both firearms and less-than-lethal projectile devices
free of tax. Moreover, redefining ``firearm'' to exclude less-
than-lethal projectile devices from background check
requirements is of grave concern for public safety. If enacted,
that bill would have enabled people who are currently unable to
obtain weapons classified as firearms--such as people convicted
of domestic abuse or violent felonies--to more easily obtain
dangerous projectile weapons which may be easily modified.
In the year between the last markup and this one,
Republicans passed a party-line bill in which they removed any
taxes on the purchase of silencers, short-barreled rifles, and
short-barreled shotguns. So it comes as no surprise that the
repackaged version of last year's bill--now called the
``Innovate Less Lethal to De-Escalate Tax Modernization Act''--
is also primarily aimed at lowering taxes on dangerous weapons
without meaningfully assisting law enforcement. While we
support good faith efforts to aid law enforcement with reducing
the use of lethal force, this bill does not move towards that
goal. Enabling the public to obtain projectile weapons more
easily will only put both law enforcement and the public at
risk and potentially escalate confrontations with law
enforcement.
Moreover, the term ``less-than-lethal projectile device''
is both subjective and a misnomer. Many of the weapons that are
captured by this term can still cause serious injury and death,
with the majority of these deaths occurring after what began as
a nonviolent encounter. Furthermore, these weapons can easily
be modified by devices available on the market or by personally
manufactured parts. The result is a dangerous loophole in the
background check system whereby a prohibited purchaser may
acquire one of these devices, modify it to have the lethality
of a firearm they are not allowed to purchase, and then engage
in devastating criminal activity.
Rather than weaken firearm regulations in the name of
helping law enforcement, Republicans should focus on
strengthening laws that actually protect law enforcement,
invest in programs that enhance public safety, and prevent
people intent on causing harm from easily accessing dangerous
weapons.
Richard E. Neal,
Ranking Member.
ADDITIONAL VIEWS
Thank you, Ranking Member Neal. Mr. Chairman, I appreciate
the comments of my friend, Mr. Schweikert, although I think
they touched on just one portion of what it is he's trying to
do. I'm not sure that there's a lot of disagreement on what you
talked about; it's the other things that I think have raised
some concern with folks. But like Mr. Schweikert, I support the
adoption of less lethal devices, including tasers, which can be
used by law enforcement to reduce deadly engagement with
civilians and be used by civilians as well to save lives. This
is especially true in rural areas, such as the areas that I
represent, where backup for law enforcement can be 30 minutes
away or more.
As chair of the Gun Violence Prevention Task Force and as
the father of a deputy sheriff, I understand the value of
better tasers, and so I have concerns in that regard as well. I
can also tell you that there are a lot of bad actors who've
exploited loopholes in our laws that are used to devastate
communities with products like ghost guns, short-barreled
rifles, and others.
What I don't understand, and what nobody's been able to
satisfactorily explain, are a couple of things in this bill.
Law enforcement doesn't currently pay the excise tax on guns
nor on tasers. How does eliminating the excise tax on tasers
help make tasers more accessible to law enforcement when they
don't pay the excise tax?
I'm also told that the main proponent of this bill makes
zero products regulated by the National Firearms Act, which is
the statute that regulates especially dangerous devices such as
machine guns, sawed-off shotguns, short-barreled rifles, and
silencers. So, if the new taser isn't regulated under the
National Firearms Act, why do the proponents of this bill
include Section 3, which will create a new loophole in the
National Firearms Act?
Mr. Chairman, I've been talking to proponents of innovative
tasers in the gun violence prevention community for months. I
can tell you that there's broad support for making tasers more
accessible to law enforcement and also a lot of interest in
addressing access issues in regards to the excise tax.
But I just find it troubling that this bill would weaken
the National Firearms Act under the auspices of supporting
taser innovation when tasers aren't regulated under this
section of the law. Unless we can sort this out, or unless some
of the amendments that are being offered today are adopted, I'm
going to have to be a ``no'' and urge the rest of the committee
to be a ``no'' on this.
Mike Thompson.
[all]