No Handouts for Drug Advertisements Act

This bill would change the tax code so drug makers can no longer claim tax write-offs for ads that promote prescription or compounded drugs directly to the general public. “Direct-to-consumer” ads include messages on TV, radio, billboards, direct mail, and online or digital platforms like websites, social media, and apps. Ads in journals and other periodicals are not covered by this ban. The rule applies to companies that sponsor prescription drugs and to owners of drug outsourcing facilities.

Key points

• Who is affected: Sponsors of prescription drugs and owners of drug outsourcing facilities.
• What changes: No tax deduction for the cost of direct-to-consumer ads about prescription or compounded drugs.
• Where it applies: TV, radio, telephone systems, direct mail, billboards, and internet/digital platforms (including social media and apps).
• What’s not included: Ads in journals and other periodicals remain allowed for deduction purposes.
• When: The text provided does not specify an effective date.