S. 1785
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 SENATE OF THE UNITED STATES · May 15, 2025 · Sponsor: Mr. Hawley · Committee: Committee on Finance
Table of contents
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 advertisingmeans 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).
- The term
- (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 entitymeans—- (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.
- The term
- (B) Covered drug
- The term
covered drugmeans—- (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.
- The term