Innovate Less Lethal to De-Escalate Tax Modernization Act

This bill exempts certain less-than-lethal projectile devices from federal sales taxes and National Firearms Act restrictions. It directly affects manufacturers, importers, and producers of these devices, which are defined as non-lethal tools (like rubber bullets or beanbag rounds) designed not to cause serious injury and unable to be easily converted to use standard firearm ammunition. Key mechanisms include a 90-day classification process for manufacturers seeking exemption, an annual public list of approved devices, and annual congressional reports on devices excluded from the exemption. The policy change applies to devices meeting specific safety criteria, such as projectile velocity limits and design features preventing misuse as conventional weapons.