Technological Resource to Assist Criminal Enforcement (TRACE) Act

Directs the Attorney General to assist firearm manufacturers and importers in complying with these requirements by: (1) acquiring, installing, and upgrading ballistics equipment and bullet and cartridge casing recovery equipment; (2) hiring or designating sufficient personnel to develop and maintain a ballistics database; (3) providing education about the role of ballistics; and (4) providing for the coordination among law enforcement, regulatory agencies, and the firearm industry to curb firearm-related crime and illegal firearm trafficking.

Requires the Attorney General to: (1) establish a computer system through which State and local law enforcement agencies can promptly access ballistics records; (2) require training for all ballistics examiners; (3) conduct mandatory ballistics testing of all firearms obtained by or in the possession of the Department of Justice; and (4) report to Congress on the implementation of this Act.

Prohibits the use of ballistics information of individual guns for prosecutorial purposes unless officials have a reasonable belief that a crime has been committed and that ballistics information would assist in the investigation.