End Tobacco Loopholes Act

This legislation significantly amends the Internal Revenue Code of 1986 to establish tax rate parity among all tobacco products and introduce a new tax on nicotine. It proposes substantial increases in federal excise taxes for various tobacco products, including doubling rates for roll-your-own tobacco , small cigars , and all cigarettes . Taxes on pipe tobacco and most smokeless tobacco products are also significantly raised, with a new tax category for "discrete single-use units" like pouches or lozenges. Additionally, large cigars will be taxed by weight at $49.56 per pound, with a minimum tax per cigar. The bill imposes a new excise tax on taxable nicotine , defined as extracted, concentrated, or synthesized nicotine, at a rate equivalent to small cigarettes per 1,810 milligrams. This tax applies to nicotine not used in FDA-approved drugs and clarifies that traditional tobacco products with inherent or added nicotine will be taxed as tobacco products. To maintain the value of these taxes, the bill mandates an annual inflation adjustment for all dollar amounts, beginning in 2027. It also includes floor stocks taxes on products held for sale when new rates take effect, offering a $500 credit per person. Effective dates vary by product type.