Freedom from Taxes Act of 2026
- Sponsor
- Rep. Boebert, Lauren [R-CO-4]
- Committees
- Ways and Means Committee (primary)
- Last action
- May 20, 2026
Bottom line
The bill seeks to remove all federal tax burdens associated with the manufacture, transfer, and dealing of firearms regulated under the National Firearms Act.
What it actually does
This bill proposes to eliminate all federal taxes currently imposed under the National Firearms Act (NFA) of 1934. Specifically, it reduces the $200 transfer tax and the $200 making tax to $0, eliminates the annual special occupational tax for NFA dealers and manufacturers, and broadens an existing exemption from general excise taxes for NFA items. The changes would take effect on the first day of the first calendar quarter that begins 90 days after the bill's enactment.
Proponents argue
Proponents argue that these NFA taxes are an outdated and unconstitutional burden on Second Amendment rights, disproportionately affecting law-abiding citizens and creating unnecessary financial barriers to firearm ownership and transfer. They contend that eliminating these taxes would uphold individual liberties and remove an ineffective regulatory mechanism that primarily serves as a registration tool rather than a deterrent to criminal activity.
Opponents contend
Opponents would likely argue that the NFA taxes, while not a major revenue source, serve as a critical regulatory tool for tracking certain types of firearms and generating revenue for enforcement activities. Eliminating these taxes could weaken federal oversight of potentially dangerous weapons, make it harder to trace them, and potentially increase public safety risks by making NFA items more accessible without the current financial disincentive.
The bill is exceptionally short and clear, allowing for quick comprehension of its direct effects.
Section 2(a)
Elimination of Transfer Tax
This provision amends Section 5811(a)(1) of the Internal Revenue Code of 1986 to reduce the transfer tax on National Firearms Act (NFA) items from $200 to $0. This means that individuals legally transferring NFA-regulated firearms, such as machine guns, short-barreled rifles, or silencers, would no longer be required to pay the federal transfer tax.
Supporters argue
Supporters argue this removes an unconstitutional financial barrier to exercising Second Amendment rights, making NFA items more accessible to law-abiding citizens without compromising public safety.
Critics contend
Critics contend that eliminating this tax removes a long-standing regulatory mechanism that helps fund NFA enforcement and discourages casual acquisition of highly regulated firearms, potentially increasing risks.
Tradeoffs
This provision balances the desire for broader Second Amendment access against federal revenue generation and regulatory control over specific types of firearms.
Section 2(b)
Elimination of Making Tax
This provision amends Section 5821(a)(1) of the Internal Revenue Code of 1986 to reduce the tax on the making of NFA-regulated firearms from $200 to $0. This applies to individuals who legally manufacture NFA items for their own use, such as creating a short-barreled rifle from a standard rifle, eliminating the federal tax associated with this process.
Section 2(c)
Broadens Excise Tax Exemption for NFA Items
This provision amends Section 4182(a) of the Internal Revenue Code of 1986 by changing a cross-reference from "section 5811(a)(2)" to "section 5811(a)". Section 5811(a) covers all transfers of NFA firearms, whereas 5811(a)(2) specifically refers to "any other firearm" (i.e., not a pistol or revolver). By broadening the reference, the bill extends the exemption from the general excise tax on firearms to cover all NFA items, not just a subset.
Section 2(d)
Elimination of Special Occupational Tax
This provision adds a new subsection (c) to Section 5801 of the Internal Revenue Code of 1986, stating that the special occupational tax imposed by this section shall not apply with respect to any year that begins after the effective date of this subsection. This effectively eliminates the annual tax paid by licensed manufacturers, importers, and dealers of NFA firearms.
Amends Section 4182(a) of the Internal Revenue Code of 1986 by changing a cross-reference from "section 5811(a)(2)" to "section 5811(a)", effectively broadening the exemption from the general excise tax on firearms to cover all NFA items, not just those specifically listed in (a)(2).
Section 2(c)
Why it matters:This is standard legislative practice for technical amendments to the tax code, rather than an attempt to obscure the provision's intent.
Case for: Supporters argue this is a logical extension of the bill's goal to remove NFA-related taxes, ensuring comprehensive tax relief for NFA items.
Case against: Critics might argue that such technical changes, while seemingly minor, can have broader implications for revenue and regulatory scope that are not immediately apparent to a casual reader.
Estimated impact: Reduces federal excise tax revenue from NFA item manufacturing and importation, with the exact amount depending on market activity.