Sponsors (15)
The bill reduces or eliminates multiple federal taxes on highly regulated firearms and their dealers to lower costs and simplify compliance, while trading off lost federal revenue, potential increases in public-safety risk, and short-term administrative burdens for the IRS.
Owners, transferees, and businesses dealing in NFA-regulated firearms (e.g., machineguns, destructive devices) will no longer owe the NFA transfer/making taxes or the annual special occupational tax, reducing one-time and recurring out-of-pocket costs.
Dealers, manufacturers, taxpayers, and the Treasury/IRS will face simpler tax treatment because the excise-tax exemption is broadened to all of §5811(a), reducing paperwork and compliance complexity.
All taxpayers and the federal budget will see lower receipts because elimination of the NFA transfer/making and occupational taxes reduces federal revenue, potentially increasing budgetary pressure or reducing funding for programs financed by these receipts.
Residents and law enforcement—especially in urban communities—may face higher public-safety risks because removing these tax barriers reduces the effective cost of acquiring highly regulated firearms, which could increase their availability.
Treasury/IRS and affected businesses will incur short-term implementation and administrative costs because enforcement, collection, and recordkeeping processes must be changed.
Based on analysis of 2 sections of legislative text.
Sets NFA transfer and making taxes to $0, expands an excise-tax exemption, and ends future annual special occupational taxes.
Official title: To amend the Internal Revenue Code of 1986 to modify and eliminate certain taxes imposed under the National Firearms Act, and for other purposes.
Introduced May 20, 2026 by Lauren Boebert · Last progress May 20, 2026
Eliminates most federal transfer and making taxes on firearms and ends annual special occupational taxes required under the National Firearms Act. It also broadens an existing excise-tax exemption to cover all transfers previously referenced and phases out the special occupational tax for years after the effective date. The changes take effect the first day of the first calendar quarter beginning after 90 days from enactment.