H.R. 4242: Innovate Less Lethal to De-Escalate Tax Modernization Act

This bill, known as the Innovate Less Lethal to De-Escalate Tax Modernization Act, aims to amend the Internal Revenue Code to address advancements in technology related to less-than-lethal weapons. It proposes two main areas of focus: the taxation of certain less-than-lethal projectile devices and their classification under the National Firearms Act.

Key Provisions

1. Tax Exemptions

The bill seeks to exempt specific less-than-lethal projectile devices from federal firearms taxes. It proposes the following changes:

• The tax currently applied to firearms and ammunition will not apply to:
  • Less-than-lethal projectile devices.
  • Devices included on a list maintained by the Secretary of the Treasury.
  • Shells or cartridges designed for use in these devices.

2. Definition of Less-than-Lethal Projectile Devices

The bill defines what constitutes a less-than-lethal projectile device as follows:

• A device that cannot readily be converted to use standard ammunition or to discharge projectiles at speeds exceeding 500 feet per second.
• Devices that are designed to be used in a manner that is unlikely to cause death or severe injury.
• Devices that do not accept common magazine-style feeding mechanisms used in semiautomatic firearms.

3. Classification Requests

Manufacturers or importers of these devices can request the Secretary of the Treasury to determine if their products meet the defined criteria. The Secretary must respond within 90 days.

4. Annual Review of Technologies

The legislation mandates that the Secretary of the Treasury create and annually update a list of recognized less-than-lethal projectile devices, as well as devices that may exceed the defined velocity but have potential for inclusion based on evolving technology. Additionally, there will be an annual report to Congress regarding these devices.

Effective Date

The provisions in this bill would apply to articles sold by manufacturers, producers, or importers after the bill is enacted into law.

Exemption Under the National Firearms Act

The bill also proposes to amend the National Firearms Act to include less-than-lethal projectile devices under its exemptions, thus specifying their treatment alongside antique firearms.

Relevant Companies

• None found