H.R. 5099: Storing All Firearms Effectively and Safely Act

This proposed legislation, known as the Storing All Firearms Effectively and Safely Act or SAFES Act, aims to introduce a refundable tax credit related to the purchase of gun safes. The main points of the bill are outlined as follows:

1. Tax Credit for Gun Safes

The bill would amend the Internal Revenue Code to establish a tax credit for individuals who buy gun safes. The details are:

• An individual could claim a credit worth 90% of the total amount they spend on a gun safe within the taxable year.
• For purchases made before January 1, 2031, any type of gun safe would qualify for the tax credit.
• For purchases made after December 31, 2030, only those gun safes deemed 'highly effective' in preventing unauthorized access—based on a report from the Secretary of Health and Human Services—would qualify.

2. Credit Limitations

The amount of credit available to a taxpayer would be capped based on previous claims:

• The maximum credit for an individual would be $500, or $1,000 for individuals filing a joint return.
• The credit amount available cannot exceed the difference between the set limit and any credits claimed in the prior six taxable years.

3. Definition of Gun Safe

The legislation specifies what constitutes a gun safe, stating that it must:

• Be designed and marketed primarily to deny unauthorized access to firearms or ammunition.
• Include safes, cases, lock boxes, or any security devices secured by a combination lock, key lock, or biometric lock.
• Exclude used safes that do not have their original use starting with the taxpayer making the claim.

4. Personal Information Protection

Importantly, the bill states that a taxpayer cannot be required to provide any information about their firearms as a condition for receiving the tax credit.

5. Reporting Requirements

Additionally, the Secretary of Health and Human Services is tasked with publishing a report within five years after the enactment of the Act. This report must list which types of gun safes are considered highly effective at preventing unauthorized access.

6. Effective Date

The provisions of this Act would take effect for taxable years beginning after December 31, 2025.

Relevant Companies

• OTIS: Otis Technology is a company that produces gun cleaning supplies and may also manufacture or sell gun safes.
• RSG: Ruger & Company, Inc. is a well-known firearm manufacturer that could see increased sales of gun safes as a result of this tax credit promoting safe gun storage.
• SAVRF: SafeVenture Technologies could benefit as the demand for innovative gun storage solutions rises, especially if their products qualify under the tax credit guidelines.