119-s1785

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1785 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 1785

 To amend the Internal Revenue Code of 1986 to deny the deduction for 
 advertising and promotional expenses for certain drugs.

_______________________________________________________________________

 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.
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