H.R. 3010

119th CONGRESS 1st Session

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 · Sponsor: Mr. Murphy · Committee: Committee on Ways and Means

Table of contents

• H.R. 3010
  • Sec. 280I. Disallowance of deduction for direct-to-consumer advertising of certain drugs.

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—
      • is in regard to a covered drug, and
      • 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.