II 

118TH CONGRESS 

1ST SESSION S. 464 

To amend the Internal Revenue Code of 1986 to deny the deduction for 

advertising and promotional expenses for tobacco products and electronic 

nicotine delivery systems. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 16, 2023 

Mrs. SHAHEEN (for herself, Mr. BLUMENTHAL, Mr. BROWN, Mr. MERKLEY, 

Mr. REED, and Mr. DURBIN) introduced the following bill; which was 

read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to deny the 

deduction for advertising and promotional expenses for 

tobacco products and electronic nicotine delivery systems. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘No Tax Subsidies for 

5 E-Cigarette and Tobacco Ads Act’’. 


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1 SEC. 2. DISALLOWANCE OF DEDUCTION FOR ADVERTISING 

2 AND PROMOTIONAL EXPENSES FOR TO3 BACCO PRODUCTS AND ELECTRONIC NICO4 TINE DELIVERY SYSTEMS. 

5 (a) IN GENERAL.—Part IX of subchapter B of chap6 ter 1 of subtitle A of the Internal Revenue Code of 1986 

7 is amended by adding at the end the following new section: 

8 ‘‘SEC. 280I. DISALLOWANCE OF DEDUCTION FOR DIRECT9 TO-CONSUMER ADVERTISING OF TOBACCO 

10 PRODUCTS AND ELECTRONIC NICOTINE DE11 LIVERY SYSTEMS. 

12 ‘‘(a) IN GENERAL.—No deduction shall be allowed 

13 under this chapter for expenses relating to direct-to-con14 sumer advertising of tobacco products (including elec15 tronic nicotine delivery systems) for any taxable year. 

16 ‘‘(b) DIRECT-TO-CONSUMER ADVERTISING.—For 

17 purposes of this section, the term ‘direct-to-consumer ad18 vertising’ means any dissemination, by or on behalf of a 

19 sponsor of a tobacco product (including an electronic nico20 tine delivery system product), of an advertisement 

21 which— 

22 ‘‘(1) is in regard to such tobacco product (in23 cluding an electronic nicotine delivery systems prod24 uct), and 

25 ‘‘(2) is primarily targeted to the general public, 

26 including through— 


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1 ‘‘(A) publication in journals, magazines, 

2 other periodicals, and newspapers, 

3 ‘‘(B) broadcasting through media such as 

4 radio, television, and telephone communication 

5 systems, direct mail, and billboards, and 

6 ‘‘(C) dissemination on the internet or 

7 through digital platforms (including social 

8 media, mobile media, web applications, digital 

9 applications, mobile applications, and electronic 

10 applications). 

11 ‘‘(c) TOBACCO PRODUCT.—For purposes of this sec12 tion, the term ‘tobacco product’ means any product de13 scribed in section 201(rr) of the Federal Food, Drug, and 

14 Cosmetic Act (21 U.S.C. 321(rr)). 

15 ‘‘(d) ELECTRONIC NICOTINE DELIVERY SYSTEM.— 

16 For purposes of this section, the term ‘electronic nicotine 

17 delivery system’— 

18 ‘‘(1) means any electronic device that delivers 

19 nicotine, flavor, or another substance via an aero20 solized solution to the user inhaling from the device 

21 (including e-cigarettes, e-hookah, e-cigars, vape pens, 

22 advanced refillable personal vaporizers, and elec23 tronic pipes) and any component, liquid, part, or ac24 cessory of such a device, whether or not sold sepa25 rately, and 


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1 ‘‘(2) does not include a product that— 

2 ‘‘(A) is approved by the Food and Drug 

3 Administration for sale as a tobacco cessation 

4 product or for another therapeutic purpose, and 

5 ‘‘(B) is marketed and sold solely for a pur6 pose described in subparagraph (A).’’. 

7 (b) CONFORMING AMENDMENT.—The table of sec8 tions for such part IX of the Internal Revenue Code of 

9 1986 is amended by adding after the item relating to sec10 tion 280H the following new item: 

‘‘Sec. 280I. Disallowance of deduction for direct-to-consumer advertising of tobacco products and electronic nicotine delivery systems.’’. 

11 (c) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to amounts paid or incurred after 

13 the date of the enactment of this Act, in taxable years 

14 ending after such date. 

Æ 


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