End Tobacco Loopholes Act

Summary

Raises federal excise taxes across many tobacco product categories, creates a new excise tax on extracted/concentrated/synthetic nicotine used in vaping and similar products, and defines a new taxable product type for single‑use nicotine/tobacco units. It harmonizes and increases per‑unit or per‑thousand rates for roll‑your‑own, pipe tobacco, small cigars, smokeless products, and adds rules for taxing large cigars by weight. Establishes a taxable definition for “discrete single‑use units” and directs Treasury to implement rules for applying the new taxes and for determining cigar weight; it also excludes nicotine intended for FDA‑approved or authorized drugs when manufacturers demonstrate that intended use to HHS, requiring coordination between tax categories and regulatory authorities.

• Raises federal excise taxes and harmonizes rates across cigarette alternatives and tobacco product categories.
• Creates a new excise tax on extracted, concentrated, or synthetic nicotine measured per 1,810 mg of nicotine with proportional taxation for fractions.
• Defines and taxes a new category called “discrete single‑use units” at a per‑1,000‑unit rate.
• Sets specific new dollar rates for roll‑your‑own and pipe tobacco and increases rates for small cigars and some smokeless products.
• Replaces the prior large‑cigar ad valorem rule and authorizes Treasury to issue guidance for determining cigar weight for tax purposes.
• Exempts nicotine intended for FDA‑approved or authorized drugs/combination products when manufacturer/importer demonstrates intended use to HHS.
• Requires coordination so traditional tobacco products continue to be taxed under their established product categories.
• Likely increases federal excise tax revenue and could raise consumer prices for tobacco and vaping products.