Summary

Creates a tax and regulatory exemption for certain "less-than-lethal projectile devices." The bill exempts qualifying devices and their cartridges from the federal excise tax on firearms and removes those devices from the federal definition of "firearm" under the National Firearms Act. It defines qualifying devices by speed, inability to fire conventional ammunition or be readily converted to do so, and inability to accept certain feeding devices, and requires the Treasury Secretary to rule on classifications, publish annual lists, and report to tax committees.

• Exempts certain "less-than-lethal projectile devices" and their cartridges from the federal firearm excise tax.
• Removes qualifying less-than-lethal devices from the NFA definition of "firearm," exempting them from NFA rules.
• Defines qualifying devices by three criteria: max velocity (500 ft/s), inability to fire conventional ammunition or be readily converted, and inability to accept certain feeding devices.
• Requires the Treasury Secretary to rule on device classifications within 90 days of request and to publish and annually update public lists.
• Requires an annual report to House Ways and Means and Senate Finance committees explaining lists and inclusion/exclusion reasons.
• Tax exemption applies to qualifying items sold by manufacturers/producers/importers after enactment.
• Creates a second public list of devices that would qualify if the 500 ft/s limit were ignored (for transparency/comparison).
• Shifts administrative determination and public listing responsibilities to Treasury and may reduce ATF/NFA oversight for exempted devices.
• Leaves state law and other federal firearms statutes unchanged; does not itself regulate use, possession, or safety training.