No Handouts for Drug Advertisements Act

This bill would stop drug makers from writing off the cost of ads that target the general public. In short, companies could no longer claim a tax deduction for direct-to-consumer ads for prescription or compounded drugs. Ads aimed at regular people on TV, radio, billboards, and online (including social media and apps) would count. Ads in medical journals and similar periodicals would not count as direct-to-consumer ads and would still be deductible. The rule applies to companies that sponsor prescription drugs or own drug compounding facilities .

• “Direct-to-consumer advertising” includes public-facing ads about a covered drug on broadcast media and the internet/digital platforms; it excludes ads published in journals and other periodicals. “Covered drugs” include prescription drugs and compounded drugs. “Covered entities” include drug sponsors and owners of outsourcing facilities .