End Tobacco Loopholes Act

Summary

Raises federal excise taxes across most tobacco product categories, creates a new specific tax on discrete single‑use smokeless tobacco units, and establishes a new nicotine excise tax that applies to nicotine used in vaping and similar products (with an exclusion for FDA‑approved or investigational drug uses). It also updates definitions and tax rules for small and large cigars and directs the Treasury to provide guidance on measuring large‑cigar weight for tax purposes. The changes increase tax rates for roll‑your‑own and pipe tobacco, raise smokeless‑tobacco and small‑cigar rates, add a statutory formula for large‑cigar taxation, and add definitions and parity language to the Internal Revenue Code to capture new product forms and taxable nicotine used in e‑liquid products.

• Imposes higher federal excise taxes on roll‑your‑own tobacco, pipe tobacco, smokeless tobacco, small cigars, and other tobacco categories.
• Creates a new excise tax category and rate for discrete single‑use smokeless tobacco units (e.g., single pouches, lozenges, dissolvables).
• Introduces a new excise tax on "taxable nicotine" used in vaping and similar products, excluding FDA‑approved or investigational drug uses.
• Adds or updates statutory definitions to capture novel product forms and align tax treatment across processed tobacco products.
• Replaces the large‑cigar ad valorem rule with a new statutory tax formula and allows Treasury to issue guidance on measuring cigar weight.
• Increases compliance and recordkeeping obligations for manufacturers, importers, and retailers to calculate and remit new or higher taxes.
• Likely increases federal revenue and retail prices for affected tobacco and nicotine products, with potential public‑health benefits from reduced use.
• May be regressive in impact: lower‑income consumers who use taxed products could bear a larger share of the cost increase.
• Carves out nicotine used in FDA‑approved or investigational drug products from the new nicotine excise tax.
• Removes an obsolete code subsection and inserts parity language to reduce previous tax loopholes between product types.