No Tax Subsidies for E-Cigarette and Tobacco Ads Act

Subjects: Taxation, Business expenses, Drug, alcohol, tobacco use, Income tax deductions, Marketing and advertising

Summary:  <p><strong>No Tax Subsidies for E-Cigarette and Tobacco Ads Act</strong></p> <p>This bill denies a tax deduction for expenses relating to direct-to-consumer advertising of tobacco products, including electronic nicotine delivery systems.</p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 464 Introduced in Senate (IS)]

&lt;DOC&gt;






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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``No Tax Subsidies for E-Cigarette and 
Tobacco Ads Act''.

SEC. 2. DISALLOWANCE OF DEDUCTION FOR ADVERTISING AND PROMOTIONAL 
              EXPENSES FOR TOBACCO PRODUCTS AND ELECTRONIC NICOTINE 
              DELIVERY SYSTEMS.

    (a) In General.--Part IX of subchapter B of chapter 1 of subtitle A 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 280I. DISALLOWANCE OF DEDUCTION FOR DIRECT-TO-CONSUMER 
              ADVERTISING OF TOBACCO PRODUCTS AND ELECTRONIC NICOTINE 
              DELIVERY SYSTEMS.

    ``(a) In General.--No deduction shall be allowed under this chapter 
for expenses relating to direct-to-consumer advertising of tobacco 
products (including electronic nicotine delivery systems) for any 
taxable year.
    ``(b) Direct-to-Consumer Advertising.--For purposes of this 
section, the term `direct-to-consumer advertising' means any 
dissemination, by or on behalf of a sponsor of a tobacco product 
(including an electronic nicotine delivery system product), of an 
advertisement which--
            ``(1) is in regard to such tobacco product (including an 
        electronic nicotine delivery systems product), and
            ``(2) is primarily targeted to the general public, 
        including through--
                    ``(A) publication in journals, magazines, other 
                periodicals, and newspapers,
                    ``(B) broadcasting through media such as radio, 
                television, and telephone communication systems, direct 
                mail, and billboards, and
                    ``(C) dissemination on the internet or through 
                digital platforms (including social media, mobile 
                media, web applications, digital applications, mobile 
                applications, and electronic applications).
    ``(c) Tobacco Product.--For purposes of this section, the term 
`tobacco product' means any product described in section 201(rr) of the 
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321(rr)).
    ``(d) Electronic Nicotine Delivery System.--For purposes of this 
section, the term `electronic nicotine delivery system'--
            ``(1) means any electronic device that delivers nicotine, 
        flavor, or another substance via an aerosolized solution to the 
        user inhaling from the device (including e-cigarettes, e-
        hookah, e-cigars, vape pens, advanced refillable personal 
        vaporizers, and electronic pipes) and any component, liquid, 
        part, or accessory of such a device, whether or not sold 
        separately, and
            ``(2) does not include a product that--
                    ``(A) is approved by the Food and Drug 
                Administration for sale as a tobacco cessation product 
                or for another therapeutic purpose, and
                    ``(B) is marketed and sold solely for a purpose 
                described in subparagraph (A).''.
    (b) Conforming Amendment.--The table of sections for such part IX 
of the Internal Revenue Code of 1986 is amended by adding after the 
item relating to section 280H the following new item:

``Sec. 280I. Disallowance of deduction for direct-to-consumer 
                            advertising of tobacco products and 
                            electronic nicotine delivery systems.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act, in taxable years ending after such date.
                                 &lt;all&gt;
</pre></body></html>