Would it be possible to get with some local Sheriffs, maybe get a grant of some sort, make a few of them legally for the police department without having to pay $200 to give it away, and get a patent on the design???? If so; what would be the first few stepping stones to hit along the way???
To make a suppressor legally for anyone other than yourself requires an 07 Manufacturers FFL along with an 02 SOT.
You can make one for yourself with a Form 1 IF it is legal in your state to do so.
Military and Police are exempt from paying the transfer fee as long as you have a letterhead stating that it will be used in official duties and this letterhead must be on file. Most cops that I deal with get a letterhead from the dept to buy a suppressor. For personal use such as hunting, they must pay the fee and it is registered to them.
I seriously doubt that you could get a grant to from the Police Dept's, to make any. Mostly if they do get a grant, it will be for equipment that they deem necessary and if suppressors are one of the tools they need, they will buy it from established dealers that are properly licensed and provide them with the required paperwork.
The 07 FFL is $150 for 3 years. The SOT (Special Occupational Tax) is $500 per year if you do less than $500,000 in business the first year, if you do more than that it is $1000 per year.
And of course, you need the equipment and the skills to make an effective suppressor that will not self destruct when you shoot it. That requires a lathe and in some cases a mill along with all the supporting tools. As an 07 Manufacturer, you could legally load the subsonic ammo and sell it to those that need it as some subsonic ammo is hard to get or very expensive and subsonic ammo is used to be truly quiet as standard ammo is still pretty loud due to the sonic crack that it makes.
07/02 FFL and Police Officer.