[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3010 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 3010

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 24, 2025

   Mr. Murphy (for himself, Ms. Craig, Mr. Begich, and Ms. Scholten) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 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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