Title: End Taxpayer Subsidies for Drug Ads Act
Policy area: Taxation

Summary:
End Taxpayer Subsidies for Drug Ads Act
This bill amends the Internal Revenue Code to prohibit tax deductions for expenses relating to direct-to-consumer advertising of prescription drugs.
"Direct-to-consumer advertising" is any dissemination, by or on behalf of a sponsor of a prescription drug product, of an advertisement that is: (1) in regard to the drug product, and (2) primarily targeted to the general public.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2478 Introduced in Senate (IS)]

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115th CONGRESS
  2d Session
                                S. 2478

 To amend the Internal Revenue Code of 1986 to deny the deduction for 
      advertising and promotional expenses for prescription drugs.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 1, 2018

Mrs. McCaskill (for herself and Mrs. Shaheen) 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 prescription drugs.

    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 ``End Taxpayer Subsidies for Drug Ads 
Act''.

SEC. 2. DISALLOWANCE OF DEDUCTION FOR ADVERTISING AND PROMOTIONAL 
              EXPENSES FOR PRESCRIPTION DRUGS.

    (a) In General.--Part IX of subchapter B of chapter 1 of subtitle A 
of the Internal Revenue Code of 1986 (relating to items not deductible) 
is amended by adding at the end the following new section:

``SEC. 280I. DISALLOWANCE OF DEDUCTION FOR DIRECT-TO-CONSUMER 
              ADVERTISING OF PRESCRIPTION DRUGS.

    ``(a) In General.--No deduction shall be allowed under this chapter 
for expenses relating to direct-to-consumer advertising of prescription 
drugs 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 prescription drug 
product (as such term is defined in section 735(3) of the Federal Food, 
Drug, and Cosmetic Act), of an advertisement which--
            ``(1) is in regard to such prescription drug product, and
            ``(2) 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).''.
    (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 prescription drugs.''.
    (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.
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