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No Handouts for Drug Advertisements Act
To amend the Internal Revenue Code of 1986 to deny the deduction for advertising and promotional expenses for certain drugs.
Summary
This bill would amend the tax code to disallow deductions for direct-to-consumer advertising expenses related to prescription drugs and compounded drugs. Covered advertising includes promotion through television, radio, direct mail, billboards, internet, digital platforms, and social media, but excludes advertisements in professional journals and periodicals. Pharmaceutical companies would no longer be able to deduct these advertising costs as business expenses for tax purposes. The provision would be effective for advertising expenses incurred after the bill's enactment.
AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.
Sponsor (1)
- Sen. Hawley, Josh [R-MO] (R-MO)
2 cosponsors
- Sen. Shaheen, Jeanne [D-NH] (D-NH)
- Sen. Slotkin, Elissa [D-MI] (D-MI)
Actions (2)
- May 15, 2025 Read twice and referred to the Committee on Finance. · senate
- May 15, 2025 Introduced in Senate
Similar bills (6)
Bills with similar text or summary — includes reintroductions across Congresses. Ranked by semantic similarity of the bill text (computed locally); a neutral discovery aid, not a claim the bills are duplicates.
Full text
IN THE SENATE OF THE UNITED STATES
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
A BILL
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:
“SEC. 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:
“Sec. 280I. Disallowance of deduction for direct-to-consumer advertising of certain 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. <all>
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