H.R. 8921: Freedom from Taxes Act of 2026

This bill, titled the Freedom from Taxes Act of 2026, proposes modifications to the Internal Revenue Code specifically related to certain taxes associated with firearms under the National Firearms Act of 1934. Here is a summary of the main provisions of the bill:

Overview of Key Provisions

• Elimination of Transfer Tax: The bill seeks to abolish the transfer tax on firearms, which is currently set at $200. This tax is assessed when someone transfers ownership of regulated firearms, such as machine guns and silencers. Under this bill, the transfer tax amount would be changed from $200 to $0.
• Elimination of Making Tax: Similarly, the bill aims to eliminate the making tax, which also stands at $200. This tax is applied when a person manufactures a regulated firearm. The proposed change would set the tax from $200 to $0.
• Exemption from Excise Tax: The bill proposes that certain provisions related to excise taxes on firearms be amended to provide greater exemptions. Specifically, it strikes certain references in the current law and redefines the applicable sections to exempt these firearms from incurring excise tax.
• Elimination of Special Tax: The bill introduces amendments to remove certain special taxes imposed under the National Firearms Act. This change is aimed at making the overall taxation scheme concerning firearms more lenient.
• Effective Date: If enacted, the modifications proposed by this bill would take effect at the start of the first calendar quarter following 90 days after the law is enacted.

Impact on Firearm Transactions

By eliminating these particular taxes—essentially reducing the financial burden associated with the purchase and manufacturing of certain firearms—the bill is aimed at facilitating easier access to firearms for individuals and businesses. This could likely expand the market for certain types of firearms and make it more economically viable for manufacturers to create these products without the added tax cost.

Relevant Companies

• Ruger (RGR) - This company manufactures firearms and may see an increase in sales due to the elimination of transfer and making taxes, making their products more attractive to consumers.
• Smith & Wesson Brands (SWBI) - As another significant firearms manufacturer, Smith & Wesson might benefit from reduced costs and increased consumer interest from the tax eliminations proposed in this bill.
• Axon Enterprise (AXON) - While known for its technology, Axon offers extended enforcement equipment that may be subject to these taxes; the bill's changes could influence their pricing and sales strategy.