Prevent Family Fire Act of 2023

I 118TH CONGRESS 1ST SESSION H. R. 2770 To amend the Internal Revenue Code of 1986 to allow for a credit against tax for sales at retail of safe firearm storage devices. IN THE HOUSE OF REPRESENTATIVES APRIL 20, 2023 Mr. LEVIN (for himself, Mr. LAWLER, Mr. BOYLE of Pennsylvania, Mrs. KIM of California, Mr. VICENTE GONZALEZ of Texas, and Ms. SALAZAR) in- troduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to allow for a credit against tax for sales at retail of safe firearm storage devices. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Prevent Family Fire 4 Act of 2023’’. 5 SEC. 2. SAFE FIREARM STORAGE CREDIT. 6 (a) IN GENERAL.—Subpart D of part IV of sub- 7 chapter A of chapter 1 of the Internal Revenue Code of 8 VerDate Sep 11 2014 22:13 Apr 26, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2770.IH H2770 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 2770 IH 1986 is amended by adding at the end the following new 1 section: 2 ‘‘SEC. 45BB. SAFE FIREARM STORAGE CREDIT. 3 ‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec- 4 tion 38, the safe firearm storage credit determined under 5 this section for the taxable year is an amount equal to 6 10 percent of amounts received from the first retail sale 7 of each safe firearm storage device sold by the taxpayer 8 for use within the United States during the taxable year. 9 ‘‘(b) LIMITATIONS.— 10 ‘‘(1) $400 PER DEVICE.—The amounts received 11 from a first retail sale that are taken into account 12 under subsection (a) with respect to a safe firearm 13 storage device shall not exceed $400 per device. 14 ‘‘(2) FAIR MARKET VALUE.—The amount taken 15 into account under subsection (a) shall not include 16 amounts in excess of the fair market value of such 17 safe firearm storage device. 18 ‘‘(c) DEFINITIONS AND SPECIAL RULES.—For pur- 19 poses of this section— 20 ‘‘(1) DETERMINATION OF PRICE.—In deter- 21 mining price, there shall be excluded, if stated as a 22 separate charge, the amount of any retail sales tax 23 imposed by any State or political subdivision thereof 24 VerDate Sep 11 2014 22:13 Apr 26, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2770.IH H2770 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 2770 IH or the District of Columbia, whether the liability for 1 such tax is imposed on the vendor or vendee. 2 ‘‘(2) FIRST RETAIL SALE.—The term ‘first re- 3 tail sale’ means the first sale, for a purpose other 4 than for resale or leasing in a long-term lease, after 5 production, manufacture, or importation. 6 ‘‘(3) SAFE FIREARM STORAGE DEVICE.— 7 ‘‘(A) IN GENERAL.—The term ‘safe fire- 8 arm storage device’ means a device that is— 9 ‘‘(i) designed and marketed for the 10 principal purpose of denying unauthorized 11 access to, or rendering inoperable, a fire- 12 arm or ammunition, and 13 ‘‘(ii) secured by a combination lock, 14 key lock, or lock based on biometric infor- 15 mation which— 16 ‘‘(I) is integrated into the design 17 of the device, and 18 ‘‘(II) once locked, is incapable of 19 being opened without the combination, 20 key, or biometric information, respec- 21 tively. 22 ‘‘(B) EXCLUSION.—The term ‘safe firearm 23 storage device’ does not include— 24 VerDate Sep 11 2014 22:13 Apr 26, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2770.IH H2770 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 2770 IH ‘‘(i) any device which is incorporated 1 to any extent into the design of a firearm 2 or of ammunition, or 3 ‘‘(ii) any device that, as of the date of 4 the sale described in subsection (a), has 5 been subject to a mandatory recall by the 6 Consumer Product Safety Commission. 7 ‘‘(C) FIREARM; AMMUNITION.—The terms 8 ‘firearm’ and ‘ammunition’ have the meanings 9 given such terms in section 921 of title 18, 10 United States Code (without regard to all that 11 follows ‘firearm silencer’ in paragraph (3) of 12 such section). 13 ‘‘(d) RECAPTURE.— 14 ‘‘(1) IN GENERAL.—The Secretary shall, by 15 regulations, provide for recapturing the benefit of 16 any credit allowable under subsection (a) if such 17 credit is improperly or excessively claimed. 18 ‘‘(2) DOCUMENTATION.—The Secretary may re- 19 quire such information or registration as the Sec- 20 retary deems necessary for purposes of recapture 21 under paragraph (1). 22 ‘‘(e) TERMINATION.—This section shall not apply to 23 sales after December 31, 2030.’’. 24 VerDate Sep 11 2014 22:13 Apr 26, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2770.IH H2770 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 2770 IH (b) CREDIT MADE PART OF GENERAL BUSINESS 1 CREDIT.—Subsection (b) of section 38 of the Internal 2 Revenue Code of 1986 is amended by striking ‘‘plus’’ at 3 the end of paragraph (40), by striking the period at the 4 end of paragraph (41) and inserting ‘‘, plus’’, and by add- 5 ing at the end the following new paragraph: 6 ‘‘(42) the safe firearm storage credit deter- 7 mined under section 45BB(a).’’. 8 (c) CREDIT ALLOWED AGAINST AMT.—Section 9 38(c)(4)(B) of such Code is amended by redesignating 10 clauses (x) through (xii) as clauses (xi) through (xiii), re- 11 spectively, and by inserting after clause (ix) the following 12 new clause: 13 ‘‘(x) the credit determined under sec- 14 tion 45BB,’’. 15 (d) CLERICAL AMENDMENT.—The table of sections 16 for subpart D of part IV of subchapter A of chapter 1 17 of such Code is amended by adding at the end the fol- 18 lowing new item: 19 ‘‘Sec. 45BB. Safe firearm storage credit.’’. (e) REPORT.—The Secretary of the Treasury shall 20 make publicly available an annual report of the credits 21 against tax allowed by reason of section 45BB (as added 22 by this section), disaggregated by State. 23 VerDate Sep 11 2014 22:13 Apr 26, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2770.IH H2770 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 2770 IH (f) EFFECTIVE DATE.—The amendments made by 1 this section shall apply to taxable years beginning after 2 the date of the enactment of this Act. 3 Æ VerDate Sep 11 2014 22:13 Apr 26, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\H2770.IH H2770 kjohnson on DSK79L0C42PROD with BILLS