May 15, 2025
Mr. Hawley (for himself and Mrs. Shaheen) introduced the following bill; which was read twice and referred to the Committee on Finance
To amend the Internal Revenue Code of 1986 to deny the deduction for advertising and promotional expenses for certain 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 No Handouts for Drug Advertisements Act
.
Sec. 2. Disallowance of deduction for advertising and promotional expenses for certain drugs
(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:
280I. Disallowance of deduction for direct-to-consumer advertising of certain drugs
(a) In general
No deduction shall be allowed under this chapter for expenses relating to direct-to-consumer advertising of covered drugs for any taxable year.
(b) Direct-to-Consumer advertising
For purposes of this section—
(1) In general
The term direct-to-consumer advertising means any dissemination, by or on behalf of a covered entity, of an advertisement which—
(A)
is in regard to a covered drug, and
(B)
primarily targeted to the general public, including through—
(i)
broadcasting through media such as radio, television, and telephone communication systems, direct mail, and billboards, and
(ii)
dissemination on the Internet or through digital platforms (including social media, mobile media, web applications, digital applications, mobile applications, and electronic applications).
(2) Exception
Such term shall not include an advertisement made through publication in journals and other periodicals.
(3) Other terms
For purposes of this subsection—
(A) Covered entity
The term covered entity means—
(i)
a sponsor of a prescription drug product (as such term is defined in section 735(3) of the Federal Food, Drug, and Cosmetic Act), or
(ii)
a person that owns an outsourcing facility (as such term is defined in section 503B(d)(4) of such Act), either directly or indirectly through a subsidiary.
(B) Covered drug
The term covered drug means—
(i)
a prescription drug product (as such term is defined in section 735(3) of the Federal Food, Drug, and Cosmetic Act), or
(ii)
a drug compounded in accordance with section 503A or 503B of such Act.
(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:
(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.