This past Independence Day President Trump signed into law his Big Beautiful Bill™. What better way to celebrate our independence from the overbearing mother land than with a brand new 940-page law?
National Firearms Act Rollercoaster
The new law affects the NFA, and what exactly would be done has been a rollercoaster. The House version originally removed suppressors from the NFA entirely eliminating both the tax and the registration requirement. The Senate then decided to up the ante and removed short barreled rifles, short barreled shotguns and any other weapons from the NFA also.
Then came the Byrd Bath. . . the phase where an unelected bureaucrat, last hired by Democrat Senator Harry Reid, tells the Senate what they are allowed to do. Surprise, surprise, the DC career staffer threw out much of the Senators’ agenda. This included the removal of firearms from the NFA.
What did survive was the reduction of the tax on suppressors, short barreled rifles, short barreled shotguns, and any other weapons to $0.00. However, the requirement to submit paperwork, register the firearm, and wait for approval remains.
When Does This Take Effect?
The tax is technically eliminated in the first calendar quarter starting ninety (90) days after enactment of the law. In absolutes, that is January 1, 2026. Form 4s filed before then will require a tax. After that, no tax is required.
What May the Future Hold?
Politically, the Republicans have set precedent that firearm taxes can be changed by the reconciliation process. If the democrats get a slim majority on both chambers and the presidency, we may see a return of the tax, or even an increase. The Republicans have also signaled that they would like to eliminate the registration altogether. We may see more legislation on that, or we may see Presidential action to make the registration process as simple as possible.
Judicially, several major gun rights groups are bringing litigation challenging the NFA. The theory is that congress’s power to tax does not include the power to register and restrict transfer without a tax. This suit promises to push the limits of both the commerce clause and what is protected by the Second Amendment.
From a market standpoint, we can expect suppressors to be in short supply for a while. Manufacturers will get a six-month window to ramp up production. After that, we can expect the elimination of the tax to increase demand causing prices of suppressors to increase. The change would have been more impactful with elimination of registration, but still there will be a change.
Wait and See
May you live in interesting times. . . Certainly we do. Whether this is the end of changes to the NFA, or just the beginning I do not know. What is certain is that the NFA market will change in 2026. Some may wait until then, and others may go ahead and make purchases before that disruption arrives. We will be here to assist with either path. And if we can help with any other matters, don’t hesitate to call Robert.