To modernize Federal firearms laws to account for advancements in technology and less-than-lethal weapons, and for other purposes.

A new Title II ('Innovate Less Lethal to De-Escalate Tax Modernization') was added, expanding the bill from a single criminal-law exemption to a comprehensive package that also addresses tax and regulatory treatment of less-than-lethal projectile devices.

Section 203 amends IRC section 5845(a) to explicitly exempt less-than-lethal projectile devices (and devices on the Secretary's qualifying list) from classification under the National Firearms Act, removing them from NFA registration and tax requirements.

Section 202 amends IRC section 4182 to exempt less-than-lethal projectile devices (and their compatible shells/cartridges) from the federal firearms excise tax under section 4181, reducing the tax burden on manufacturers and importers of these devices.

Section 202 requires the Treasury Secretary to publish an annual public list of devices determined to qualify as less-than-lethal projectile devices, and a separate annual list of non-lethal devices whose projectiles exceed 500 feet per second (which would otherwise qualify).

Section 202 requires the Treasury Secretary to submit an annual written report to the House Ways and Means Committee and Senate Finance Committee regarding the list of devices that exceed the 500 fps velocity threshold, including reasons for inclusion or exclusion.

Section 202(b) sets an effective date for the tax amendments (articles sold after enactment) and provides a 180-day transition period during which pending classification requests are treated as received at the close of that period.

The short title was changed from 'Law-Enforcement Innovate to De-Escalate Act of 2025' to 'Law-Enforcement Innovate to De-Escalate Act' and restructured as a per-title citation rather than an act-wide citation. Section numbers were renumbered (1 to 101, 2 to 102) to accommodate the multi-title structure.

The definition of 'less-than-lethal projectile device' in amended section 921(a) was renumbered from paragraph (38) to paragraph (39), likely to account for other amendments made elsewhere in title 18.