Sponsors (11)
Official title: To amend the Internal Revenue Code of 1986 to allow for a credit against tax for sales at retail of safe firearm storage devices.
Introduced January 3, 2025 by Mike Levin · Last progress January 3, 2025
The bill uses a temporary tax credit to encourage production and availability of certified safe firearm storage devices—helping families and small sellers—while costing federal revenue, adding compliance burdens, and risking uneven subsidies and market distortions.
Parents and families may get greater access to affordable certified safe firearm storage devices because sellers have a 10% nonrefundable credit on first retail sales, which can expand production and distribution.
Small manufacturers and retailers of certified safe firearm storage devices receive a 10% nonrefundable credit on first retail sales, lowering their effective cost of selling these devices and improving small-business margins on eligible sales.
Annual, State-disaggregated federal reporting on credit claims increases transparency about where credits are used and how the program is distributed geographically.
All taxpayers bear lost federal revenue from the credit, which could increase deficits or reduce funding available for other federal programs.
The credit could create windfalls by subsidizing higher-priced certified storage devices up to the fair-market-value cap, benefiting some sellers more than others.
New documentation, registration, and recapture rules add compliance and administrative burdens for sellers and increase IRS administrative costs.
Based on analysis of 2 sections of legislative text.
Creates a 10% business tax credit for first retail sales of qualifying safe firearm storage devices (capped, nonrefundable), ending for sales after 12/31/2032.
Creates a temporary business tax credit to encourage the manufacture and retail sale of certified “safe firearm storage devices.” The credit equals 10% of amounts received from the first retail sale of each eligible device in the U.S., subject to per-device and fair-market-value caps, excludes separately-stated sales tax, and sunsets for sales after December 31, 2032. The Treasury is directed to issue recapture rules, may require documentation or registration, must publish an annual state-level report of credits claimed, and the credit is included in the general business credit and allowable against the AMT. The credit becomes effective for taxable years beginning after enactment and is nonrefundable. The measure affects manufacturers and retailers of qualifying devices, buyers indirectly through potential price/availability changes, and the IRS/Treasury via reporting and administration duties.