The End Tobacco Loopholes Act substantially increases federal excise taxes on tobacco and nicotine products to create more uniform tax rates across different product types. The bill roughly doubles taxes on cigarettes (from $50.33 to $100.66 per thousand small cigarettes), significantly raises taxes on roll-your-own tobacco, pipe tobacco, smokeless tobacco, and cigars, and introduces a new federal excise tax on extracted or synthesized nicotine used in vaping and similar products. The legislation affects tobacco manufacturers, importers, distributors, and ultimately consumers who purchase these products. Most tax increases take effect shortly after enactment, though provisions for newly taxed products like discrete single-use nicotine units and vaping nicotine have delayed implementation timelines of 6 to 9 months to allow for regulatory preparation. Beginning in 2027, all tax rates will be automatically adjusted annually for inflation, and the bill includes a one-time $500 credit to help businesses handle floor stock taxes on existing inventory when rates increase.
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