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Ryan Bipartisan Archery Legislation Passes House

Measure Removes Destructive Tax Loophole to Save U.S. Jobs, Corrects Other Problems With Tax Treatment of Archery Equipment

WASHINGTON – Today the U.S. House of Representatives passed by voice vote a miscellaneous tax correction bill (H.R. 1308) that includes bipartisan legislation written by First District Congressman Paul Ryan to close a tax loophole currently exploited by foreign arrow manufacturers at the expense of U.S. arrow makers.  Ryan’s archery provision levels the playing field between U.S. and foreign arrow manufacturers and corrects other problems related to tax treatment of youth bows (bows not suitable for hunting) and broadheads.   

Under current law, excise taxes are levied on archery equipment as part of the Pittman-Robertson law.  These taxes are intended to serve as a user fee for hunters, and funds generated by Pittman-Robertson go toward wildlife conservation.  The archery industry and bowhunters support this program.   

Unfortunately, the way in which these taxes are levied today hurts domestic arrow makers, providing a loophole for foreign arrow importers to avoid the excise tax.  Present law imposes the excise tax only on arrow components – not completed arrows.  Therefore, arrows assembled overseas and imported into the United States are not subject to the same tax as arrows made and assembled in the U.S.  This puts U.S. arrow manufacturers at a clear competitive disadvantage, encourages them to relocate their businesses (and jobs) overseas, and prevents revenue from flowing to conservation and game management programs.  Ryan’s archery legislation corrects this by imposing the arrow excise tax on assembled arrows that are imported into the United States. 

“This destructive loophole is relatively easy to fix, but in the meantime it is costing U.S. jobs,” Ryan said.  “So I’m glad we could move forward quickly in the House to pass my legislation correcting this inequity.  The federal government doesn’t really understand bowhunting, which is why I think the tax code has these sorts of glitches.  As a bowhunter, I understand it, and I’m happy I could help advance a solution to this problem through my work on the Ways and Means Committee.” 

Rep. Paul Ryan’s archery provision does the following:

• Closes the loophole that foreign arrow manufacturers currently exploit.  Accomplishes this by placing a 12 percent excise tax on the sale by a manufacturer, producer or importer of assembled arrows.  Retains the 12.4 percent tax on the sale by a manufacturer, producer or importer of shafts, points, nocks and vanes.

• Clarifies that broadheads are taxed at 11 percent, as an accessory.  Currently, due to their misclassification, broadheads are taxed as a component at 12.4 percent.

• Lifts the current 11 percent tax on youth bows – bows with draw weights less than 30 pounds.  These bows are not suitable for bowhunting, and those who purchase these non-hunting bows should not have to pay the user fee for wildlife and habitat management programs.  This is consistent with the purpose of the Pittman-Robertson law.  

•  Retains the 11 percent tax on arrow rests, sights and all other accessories.

•  Replaces the word “vane” in the tax code with the broader term “fletching.”

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