H.R. 3010: No Handouts for Drug Advertisements Act

This bill, titled the No Handouts for Drug Advertisements Act, proposes changes to the Internal Revenue Code that would prohibit certain businesses from deducting expenses related to advertising specific drugs directly to consumers. Here’s a breakdown of its key components:

Overview of the Bill

The primary aim of this legislation is to amend the tax code to prevent deductions for expenses associated with direct-to-consumer advertising of covered drugs. The bill specifically focuses on advertising that targets the general public, including various media platforms.

Definitions

Key terms defined in the bill include:

• Direct-to-Consumer Advertising: This refers to advertisements about covered drugs that are disseminated to the general public. Examples include advertisements shown on television, radio, billboards, or through digital means such as social media and websites.
• Covered Entity: This term includes sponsors of prescription drugs or those that operate an outsourcing facility.
• Covered Drug: These are defined as specific prescription drugs or drugs that have been compounded according to existing regulations.

Provisions of the Bill

The bill outlines that:

• As of the enactment of this Act, companies will not be able to claim tax deductions for expenses on direct-to-consumer advertisements for covered drugs.
• Advertisements published in medical journals or periodicals are exempt from this restriction.

Compliance and Effectiveness

The provisions of this bill will take effect for amounts paid or incurred after the law is enacted and will apply to taxable years ending after the enactment date.

Relevant Companies

None found