I

103D CONGRESS

1ST SESSION H. R. 2534

To amend the Internal Revenue Code of 1986 to disallow the deduction

for advertising or other promotion expenses with respect to sales of

tobacco products.

IN THE HOUSE OF REPRESENTATIVES

JUNE 28, 1993

Mr. HUFFINGTON (for himself, Mr. ANDREWS of Texas, Mr. CONYERS, Mr.

DURBIN, Mr. FRANK of Massachusetts, Mr. HANSEN, Mr. STARK, Mr.

TRAFICANT, and Mr. WYDEN) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to disallow

the deduction for advertising or other promotion expenses

with respect to sales of tobacco products.

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 ‘‘Tobacco Advertising

5 Subsidies and Health Enhancement Strategies Act’’.
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1 SEC. 2. DISALLOWANCE OF DEDUCTION FOR TOBACCO

2 PRODUCT SALES PROMOTION EXPENSES.

3 (a) GENERAL RULE.—Part IX of subchapter B of

4 chapter 1 of the Internal Revenue Code of 1986 (relating

5 to items not deductible) is amended by adding at the end

6 thereof the following new section:

7 ‘‘SEC. 280I. TOBACCO PRODUCT SALES PROMOTION EX8 PENSES.

9 ‘‘(a) GENERAL RULE.—No deduction shall be allowed

10 under this chapter for any tobacco product sale promotion

11 expense.

12 ‘‘(b) TOBACCO PRODUCT SALE PROMOTION EX13 PENSE.—For purposes of this section—

14 ‘‘(1) IN GENERAL.—The term ‘tobacco product

15 sale promotion expense’ means any amount other16 wise allowable as a deduction under this chapter

17 with respect to—

18 ‘‘(A) any advertisement primarily for pur19 poses of promoting the sale of tobacco products,

20 or

21 ‘‘(B) any of the following incurred or pro22 vided primarily for purposes described in sub23 paragraph (A)—

24 ‘‘(i) travel expenses (including meals

25 and lodging),
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1 ‘‘(ii) any amount attributable to goods

2 or services of a type generally considered

3 to constitute entertainment, amusement, or

4 recreation or to the use of a facility in con5 nection with the providing of such goods or

6 services,

7 ‘‘(iii) gifts, or

8 ‘‘(iv) other promotion expenses.

9 ‘‘(2) TOBACCO PRODUCTS.—The term ‘tobacco

10 products’ has the meaning given to such term by

11 section 5702(c).

12 ‘‘(c) REGULATIONS.—The Secretary shall prescribe

13 such regulations as may be necessary to carry out the pur14 pose of this section.’’

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

16 for part IX of subchapter B of chapter 1 of such Code

17 is amended by adding at the end thereof the following new

18 item:

‘‘Sec. 280I. Tobacco product sales promotion expenses.’’

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

20 this section shall apply to amounts paid or incurred after

21 the date of the enactment of this Act in taxable years end22 ing after such date.
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1 SEC. 3. ADDITIONAL REVENUES TO BE USED FOR DEFICIT

2 REDUCTION.

3 Any additional revenues received in the Treasury by

4 reason of the amendments made by section 2—

5 (1) shall be used for deficit reduction purposes,

6 and

7 (2) shall not be considered for any purpose

8 under the Balanced Budget and Emergency Deficit

9 Control Act of 1985.

Æ