Could SBR’s Soon Be Cheaper than Rifles? A Possible Side Effect of the BBB

Posted on by Dillon Harris, Esq.

As anybody who has paid even a little bit of attention to the news recently surely knows, the federal government recently passed this year’s budget reconciliation (Big Beautiful Bill), touching on hundreds of pieces of federal law.

Our industry watched the bill’s progress closely because of efforts to deregulate certain National Firearms Act (NFA) weapons. When the dust cleared, the final version of the bill reduced the Making (Form 1) and Transfer (Form 4) taxes to $0 for Silencers, Short Barreled Rifles, Short Barrelled Shotguns, and Any Other Weapons. The $200 Making and Transfer taxes will remain in place for Machineguns and Destructive Devices. So how does this mean SBR could be cheaper than rifles?

While there are numerous factors considered when setting the price of a product, among those factors are taxes. In this case, the relevant tax is the Firearms and Ammunition Excise Tax (FAET). Pursuant to the Section 4181 of the Internal Revenue Code, a manufacturer, producer, or importer is required to pay a 10% tax on the sale of all pistols or revolvers, and an 11% tax on all other firearms and ammo. However, this tax does not apply to any short barreled firearms if the NFA transfer tax specified in Section 5811 has been paid.

Fortunately, with the passage of the BBB, the tax under Section 5811 will soon be set to $0 (January 1, 2026). As a result, short barreled rifles (and shotguns) will not be subject to the Firearms and Ammunition Excise Tax levied on rifle manufacturers, nor will they be subject to the $200 transfer tax previously levied on purchasers.

It remains to be seen if SBR prices may actually reflect the lower tax burden when compared to their corresponding rifle versions, but they certainly carry a lower tax burden.

If you or someone you know are a firearms manufacturer, producer, or importer with questions about your Firearms and Ammunition Excise Tax burden, contact FICG today!

Firearms Industry Consulting Group® (FICG®) is a registered trademark and division of Civil Rights Defense Firm, P.C., with rights and permissions granted to Prince Law Offices, P.C. to use in this article.

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Published by Dillon Harris, Esq.

Dillon grew up in Kingman, Arizona. During high school he got his first exposure to the legal system, spending a summer working in the Mohave County Attorney’s Office working with attorneys and office staff in various practice areas. Dillon attended Northern Arizona University in Flagstaff, Arizona and received a Bachelor of Science degree in Criminology and Criminal Justice with specializations in Legal and Criminal Investigation, Legal and Court Justice, and Justice in Politics, Media, and Popular Culture. Throughout and immediately after college he held positions in both the Court Administration and Clerk of Superior Court departments of the Superior Court of Arizona in Coconino County where he was part of a team that was awarded the 2016 Strategic Agenda Award by the Arizona State Judiciary and the 2016 Merit Award by the Arizona Association of Counties. Dillon graduated cum laude from Vermont Law School and passed the Uniform Bar Exam in 2020. He is licensed to practice law in Pennsylvania and Maryland and handles cases in both states dealing with firearms or general estate practice. He is also admitted to the Third Circuit Court of Appeals and U.S. District Courts for the District of Maryland, the Middle District of Pennsylvania, the Eastern District of Pennsylvania.

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