Title: Stop Subsidizing Childhood Obesity Act
Policy area: Taxation

Summary:
Stop Subsidizing Childhood Obesity Act
This bill denies a tax deduction for advertising or marketing directed at children (age 14 or under) for food of poor nutritional quality or a brand primarily associated with food of poor nutritional quality. The bill also denies a deduction for related expenses, including:
The Department of the Treasury must enter into a contract with the National Academy of Medicine to develop procedures to evaluate and identify food of poor nutritional quality and brands that are primarily associated with such food.
The bill authorizes additional funding to carry out the Fresh Fruit and Vegetable Program under the Richard B. Russell National School Lunch Act.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9299 Introduced in House (IH)]

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117th CONGRESS
  2d Session
                                H. R. 9299

To amend the Internal Revenue Code of 1986 to protect children's health 
  by denying any deduction for advertising and marketing directed at 
    children to promote the consumption of food of poor nutritional 
                                quality.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 15, 2022

 Ms. DeLauro introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committee on 
Education and Labor, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to protect children's health 
  by denying any deduction for advertising and marketing directed at 
    children to promote the consumption of food of poor nutritional 
                                quality.

    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 ``Stop Subsidizing Childhood Obesity 
Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Childhood obesity has more than doubled in children and 
        tripled in adolescents in the past 30 years. Currently, more 
        than one-third of children and adolescents are overweight or 
        obese.
            (2) A report by the Robert Wood Johnson Foundation found 
        that if the population of the United States continues on its 
        current trajectory, adult obesity rates could exceed 60 percent 
        in a number of States by 2030.
            (3) Health-related behaviors, such as eating habits and 
        physical activity patterns, develop early in life and often 
        extend into adulthood. The diets of American children and 
        adolescents depart substantially from recommended patterns that 
        put their health at risk. Overall, American children and youth 
        are not achieving basic nutritional goals. They are consuming 
        excess calories and added sugars and have higher than 
        recommended intakes of sodium, total fat, and saturated fats.
            (4) According to a 2012 report from the Federal Trade 
        Commission, the total amount spent on food marketing to 
        children is about $2,000,000,000 a year.
            (5) Companies market food to children through television, 
        radio, internet, magazines, product placement in movies and 
        video games, schools, product packages, toys, clothing and 
        other merchandise, and almost anywhere a logo or product image 
        can be shown.
            (6) According to a comprehensive review by the National 
        Academy of Medicine, studies demonstrate that television food 
        advertising affects children's food choices, food purchase 
        requests, diets, and health.
            (7) A 2005 report from the National Academy of Medicine 
        confirmed that marketing of high-calorie foods to children and 
        adolescents has been identified as one of the major 
        contributors to childhood obesity.
            (8) Nearly three-quarters of the foods advertised on 
        television shows intended for children are for sweets and 
        convenience or fast foods.

SEC. 3. DENIAL OF DEDUCTION FOR MARKETING DIRECTED AT CHILDREN TO 
              PROMOTE FOOD OF POOR NUTRITIONAL QUALITY.

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

``SEC. 280I. DENIAL OF DEDUCTION FOR MARKETING DIRECTED AT CHILDREN FOR 
              FOOD OF POOR NUTRITIONAL QUALITY OR BRANDS PRIMARILY 
              ASSOCIATED WITH FOOD OF POOR NUTRITIONAL QUALITY.

    ``(a) In General.--No deduction shall be allowed under this chapter 
with respect to--
            ``(1) any marketing directed at children for food of poor 
        nutritional quality or brands primarily associated with food of 
        poor nutritional quality, and
            ``(2) any of the following which are incurred or provided 
        primarily for purposes described in paragraph (1):
                    ``(A) Travel expenses (including meals and 
                lodging).
                    ``(B) Goods or services of a type generally 
                considered to constitute entertainment, amusement, or 
                recreation or the use of a facility in connection with 
                providing such goods and services.
                    ``(C) Gifts.
                    ``(D) Other promotion expenses.
    ``(b) Definitions.--In this section:
            ``(1) Brand.--The term `brand' means a corporate or product 
        name, a business image, or a mark, regardless of whether it may 
        legally qualify as a trademark, used by a seller or 
        manufacturer to identify goods or services and to distinguish 
        them from the goods of a competitor.
            ``(2) Child.--The term `child' means an individual who is 
        age 14 or under.
            ``(3) Directed at.--The term `directed at' includes the use 
        of measured media if the audience for such media will consist 
        of 25 percent or more of children.
    ``(c) Marketing.--For purposes of this section, the term 
`marketing' means all advertising and promotional techniques, 
including--
            ``(1) advertising (including product placement) on 
        television and radio, in print media, in social media, mobile 
        media and apps, and on the Internet (including third-party and 
        company-sponsored websites),
            ``(2) product packaging and labeling,
            ``(3) advertising preceding a movie shown in a movie 
        theater or placed on a video (DVD or VHS) or within a video 
        game or mobile application,
            ``(4) promotional content transmitted to personal computers 
        and other digital or mobile devices,
            ``(5) advertising displays and promotions at the retail 
        site, including preferential placement,
            ``(6) specialty or premium items distributed in connection 
        with the sale of a product or a product loyalty program,
            ``(7) character licensing fees, toy cobranding and cross-
        promotions,
            ``(8) sponsorship of events,
            ``(9) celebrity endorsements, and
            ``(10) in-school advertising including corporate-branded 
        materials, corporate incentive programs, label redemption 
        programs, fundraisers, signs, scoreboards, posters, vending 
        machine fronts, in-school TV and radio, corporate sponsorships, 
        and market research activities.
    ``(d) Regulations.--Not later than 24 months after the date of the 
enactment of this section, the Secretary, in consultation with the 
Secretary of Health and Human Services and the Federal Trade 
Commission, shall promulgate such regulations as may be necessary to 
carry out the purposes of this section, including regulations defining 
the terms `directed at children', `food of poor nutritional quality', 
and `brand primarily associated with food of poor nutritional quality', 
based on the National Academy of Medicine report described in such 
section 3(b), for purposes of this section.''.
    (b) Study by National Academy of Medicine.--
            (1) In general.--Not later than 60 days after the date of 
        the enactment of this section, the Secretary of the Treasury 
        shall enter into a contract with the National Academy of 
        Medicine to develop procedures for the evaluation and 
        identification of--
                    (A) food of poor nutritional quality, and
                    (B) brands that are primarily associated with food 
                of poor nutritional quality.
            (2) Report.--Not later than 12 months after the date of the 
        enactment of this section, the National Academy of Medicine 
        shall submit to the Secretary a report that establishes the 
        proposed procedures described in paragraph (1).
    (c) Clerical Amendment.--The table of sections for part IX of 
subchapter B of chapter 1 of such Code is amended by adding at the end 
the following new item:

``Sec. 280I. Denial of deduction for marketing directed at children for 
                            food of poor nutritional quality or brands 
                            primarily associated with food of poor 
                            nutritional quality.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred in taxable years beginning 24 months 
after the date of the enactment of this Act.

SEC. 4. ADDITIONAL FUNDING FOR THE FRESH FRUIT AND VEGETABLE PROGRAM.

    In addition to any other amounts made available to carry out the 
Fresh Fruit and Vegetable Program under section 19 of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1769a), the Secretary of 
the Treasury (or the Secretary's delegate) shall, on an annual basis, 
transfer to such program, from amounts in the general fund of the 
Treasury of the United States, an amount determined by the Secretary of 
the Treasury (or the Secretary's delegate) to be equal to the increase 
in revenue for the preceding 12-month period by reason of the 
amendments made by section 3 of this Act.
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