II 

111TH CONGRESS 

1ST SESSION S. 2842 

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

direct to consumer advertising expenses for prescription pharmaceuticals 

and to provide a deduction for fees paid for the participation of children 

in certain organizations which promote physical activity. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 7, 2009 

Mr. BEGICH 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 direct to consumer advertising expenses 

for prescription pharmaceuticals and to provide a deduction for fees paid for the participation of children in 

certain organizations which promote physical activity. 

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

3 SECTION 1. DISALLOWANCE OF DEDUCTION FOR DIRECT 

4 TO CONSUMER ADVERTISING EXPENSES FOR 

5 PRESCRIPTION PHARMACEUTICALS. 

6 (a) IN GENERAL.—Part IX of subchapter B of chap7 ter 1 of subtitle A of the Internal Revenue Code of 1986 

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1 (relating to items not deductible) is amended by adding 

2 at the end the following new section: 

3 ‘‘SEC. 280I. DISALLOWANCE OF DEDUCTION FOR DIRECT TO 

4 CONSUMER ADVERTISING EXPENSES FOR 

5 PRESCRIPTION PHARMACEUTICALS. 

6 ‘‘No deduction shall be allowed under this chapter for 

7 expenses relating to direct to consumer advertising in any 

8 media for the sale and use of prescription pharmaceuticals 

9 for any taxable year.’’. 

10 (b) CONFORMING AMENDMENT.—The table of sec11 tions for such part IX of the Internal Revenue Code of 

12 1986 is amended by adding after the item relating to sec13 tion 280H the following new item: 

‘‘Sec. 280I. Disallowance of deduction for direct to consumer advertising expenses for prescription pharmaceuticals.’’. 

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

15 this section shall apply to amounts paid or incurred after 

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

17 ending after such date. 

18 SEC. 2. PHYSICAL LIFESTYLES FOR AMERICA’S YOUTH 

19 (PLAY) DEDUCTION. 

20 (a) IN GENERAL.—Part VII of subchapter B of chap21 ter 1 of the Internal Revenue Code of 1986 is amended 

22 by redesignating section 224 as section 225 and inserting 

23 after section 223 the following new section: 

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1 ‘‘SEC. 224. FEES FOR ORGANIZATIONS PROMOTING CHIL2 DREN’S PHYSICAL ACTIVITY. 

3 ‘‘(a) GENERAL RULE.—There shall be allowed as a 

4 deduction under this chapter an amount equal to the less5 er of— 

6 ‘‘(1) the amount paid or incurred by the tax7 payer during the taxable year for the participation 

8 of a qualifying child (as defined in section 152(c)) 

9 of the taxpayer in a qualified organization, or 

10 ‘‘(2) $500. 

11 ‘‘(b) LIMITATIONS.— 

12 ‘‘(1) IN GENERAL.—No deduction shall be al13 lowed under subsection (a) with respect to any tax14 payer whose adjusted gross income for the taxable 

15 year exceeds $250,000. 

16 ‘‘(2) ADJUSTED GROSS INCOME.—For purposes 

17 of this subsection, adjusted gross income shall be de18 termined— 

19 ‘‘(A) without regard to this section and 

20 sections 199, 911, 931, and 933, and 

21 ‘‘(B) after the application of sections 86, 

22 135, 137, 219, 221, 222, and 469. 

23 ‘‘(c) QUALIFIED ORGANIZATION.—For purposes of 

24 this section, the term ‘qualified organization’ means any 

25 other organization the principal activities of which are de26 signed to promote or provide for the physical activity of 

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1 children, as determined under guidelines published by the 

2 Secretary in consultation with the Secretary of Health and 

3 Human Services.’’. 

4 (b) CLERICAL AMENDMENT.—The table of sections 

5 for part VII of subchapter B of chapter 1 of such Code 

6 is amended by redesignating the item relating to section 

7 224 as relating to section 225 and inserting after the item 

8 relating to section 223 the following new item: 

‘‘Sec. 224. Fees for organizations promoting children’s physical activity.’’. 

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

10 this section shall apply to taxable years beginning after 

11 the date of the enactment of this Act. 

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