For fun I have been researching what it would cost to make an accurate look-alike of an XM177E2.
This is a Vietnam era short barrel version of the M16.
Any barrel on a rifle shorter than 16" make it a Class III short barrel rifle and at 11.5" the XM177E2 qualifies.
To go all in, it would cost about $1,300.
There is a way to make this without paying the $200 tax and filling out an ATF Form 1. The flash hider on these things are 4.5" long. There are a couple of vendors that make the 11.5" barrel with the flash hider permanently attached. Some dimensions are stretched a little bit to get to 16" overall, but unless you set it next to an SBR, you can't tell. By not paying the $200 tax and the $70 engraving fee, it comes to $1,200.
Avoid spending $270 to save $100!
Grrrrrrr!
By accepting some further anachronisms, one can get the price down to $900 on the non-SBR. What you really have to hope for is to find a complete M16A1 upper for a song, that can save $200-$300.
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