S. 1785

119 S1785 IS: No Handouts for Drug Advertisements Act
 U.S. Senate
 2025-05-15
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
  II
  119th CONGRESS
  1st Session
  S. 1785
  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.
1.
Short title
This Act may be cited as the   No Handouts for Drug Advertisements Act  .
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:
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.