Safe Firearm Storage Sales Credit

Full Title:
Prevent Family Fire Act of 2025

Summary#

This bill creates a new federal business tax credit for the sale of certain safe firearm storage devices. It lets sellers claim 10% of the price from the first retail sale of each qualifying device, with the amount counted per device capped at $400 (so the maximum credit per device is $40). The credit would apply to sales made through December 31, 2032, and the Treasury must publish an annual, state-by-state report on credits claimed.

  • Main change: Adds a new tax credit to the Internal Revenue Code for first retail sales of defined “safe firearm storage devices.”
  • Who can claim it: The taxpayer that sells the device in a qualifying first retail sale. The credit is part of the general business credit and can be used against the alternative minimum tax.
  • Device rules: A qualifying device must be designed and marketed mainly to deny unauthorized access or make a firearm or ammunition inoperable, and must use an integrated combination, key, or biometric lock that cannot be opened without that code, key, or biometric data.
  • Exclusions: Devices built into the design of a firearm or ammunition are excluded. Devices subject to a mandatory Consumer Product Safety Commission recall at the time of sale are excluded.
  • Administration: The IRS must write rules to recapture improperly claimed credits and may require documentation or registration. The credit expires for sales after Dec 31, 2032.

What is unclear: The bill does not clearly say which seller counts as making the “first retail sale” in some supply chains, how fair market value will be determined in practice, how the IRS will verify that a device meets the lock/integration standard, or whether sellers must pass savings to buyers.

What it means for you#

  • Businesses that make or sell storage devices: Eligible sellers can claim a tax credit equal to 10% of the first retail sale price per qualifying device, up to $40 per device. Sellers must track which sales are “first retail sales” and keep documentation the IRS may require.
  • Retailers and importers: If you make the first retail sale after manufacturing or importation, you may be eligible. The bill excludes sales that are for resale or long-term leases.
  • Consumers (buyers of storage devices): The credit goes to sellers, not buyers directly. Consumers could see lower prices if sellers choose to pass the credit on, but the bill does not require that.
  • Manufacturers and product designers: To qualify, products must be designed and marketed mainly to prevent unauthorized access or render firearms inoperable, and must use the specified integrated lock types. Devices incorporated into firearms are not eligible.
  • Taxpayers and IRS: The IRS must create rules to prevent improper claims and may require records or registration. Treasury will publish an annual report showing credits claimed by state.

Expenses#

No publicly available information.

  • The bill will reduce federal tax revenue by the value of credits claimed. The bill text does not estimate that amount.
  • The IRS and Treasury may face administrative costs to write rules, track claims, and publish annual reports.
  • Sellers may face compliance costs to document first retail sales and to demonstrate that devices meet the statutory definition.
  • States and localities are not charged directly by the bill, but Treasury’s state-level reporting may require data collection and processing.

Proponents' View#

  • The bill appears intended to increase availability and sale of consumer safe storage devices to reduce unauthorized access to guns and related accidents or harms.
  • A possible argument for the bill is that offering a tax credit to sellers will encourage more firms to make and market qualifying storage products, increasing consumer choice.
  • The restriction to first retail sales targets incentives at the point devices enter the consumer market rather than intermediate wholesale transactions.
  • The annual state-level reporting requirement could help measure uptake and guide future policy.

Opponents' View#

  • One concern is the missing fiscal estimate: the bill does not say how much revenue the credit will cost or whether the amount is large enough to change seller or buyer behavior.
  • The credit goes to sellers, not buyers. This may not reduce the consumer price or increase actual use of secure storage unless sellers pass the benefit on.
  • The device definition and the “integrated” lock requirement are vague in places. It is unclear which products (for example, some external cable locks or aftermarket devices) will qualify, raising compliance uncertainty.
  • Rules about what counts as the “first retail sale” and how to determine fair market value are not defined, which could complicate administration and open the door to improper claims.
  • The credit is relatively small per device (maximum $40), so it may provide only a limited financial incentive.
  • The credit expires after 2032, which may limit long-term industry responses or investments.