Innovate Less Lethal to De-Escalate Tax Modernization Act

H.R. 4242 would change how the federal government taxes less-than-lethal projectile devices, such as those used by law enforcement for de-escalation. Currently, these devices are taxed as firearms at 10-11 percent of their purchase price. If enacted, the bill would remove this tax burden from devices specifically designed to minimize injury, while maintaining taxes on traditional firearms and ammunition.

The bill establishes specific criteria for which devices qualify for the tax exemption. A less-than-lethal projectile device must be designed to not cause death or serious injury, cannot fire standard ammunition used in handguns or rifles, and cannot fire projectiles faster than 500 feet per second. The Treasury Department would maintain and annually update a public list of approved devices. The Congressional Budget Office estimates the bill would have minimal revenue impact, as these devices are primarily purchased by law enforcement and government agencies.

This bill has passed committee review and is eligible for a floor vote in the House. If approved by Congress and signed by the President, the tax exemption would apply to devices sold after the law takes effect.