Protecting Americans from Drug Marketing Act

Bill: 114-s-2623
Sponsor: full_name: Sen. Franken, Al [D-MN]
Introduced: 2016-03-03
Policy area: Taxation
Subjects: Business expenses

Income tax deductions

Marketing and advertising

Prescription drugs
Latest action: action_date: 2016-03-03
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2016-03-03
action_desc: Introduced in Senate
text: <p><strong>Protecting Americans from Drug Marketing Act</strong></p> <p>This bill amends the Internal Revenue Code to deny a tax deduction for the cost of direct-to-consumer advertising of prescription drugs. The bill defines &quot;direct-to-consumer advertising&quot; as any dissemination by or on behalf of a sponsor of a prescription drug product of a prescription drug advertisement that is primarily targeted to the general public through: (1) publication in journals, magazines, other periodicals, and newspapers; (2) broadcasting through media such as radio, television, and telephone communication systems; and (3) dissemination on the Internet (including social media). </p>

tv_txt: II 114th CONGRESS 2d Session S. 2623 IN THE SENATE OF THE UNITED STATES March 3, 2016 Mr. Franken (for himself, Mr. Whitehouse , Mr. Brown , and Mr. Udall ) 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.

1. Short title This Act may be cited as the Protecting Americans from Drug Marketing Act . 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: 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, and (C) dissemination on the Internet (including social media). . (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.