No Handouts for Drug Advertisements Act

Part IX of subchapter B of chapter 1 of subtitle A of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

No deduction shall be allowed under this chapter for expenses relating to direct-to-consumer advertising of covered drugs for any taxable year.

For purposes of this section—

The term direct-to-consumer advertising means any dissemination, by or on behalf of a covered entity, of an advertisement which—

(A) is in regard to a covered drug, and

(B) 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).

Such term shall not include an advertisement made through publication in journals and other periodicals.

For purposes of this subsection—

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.

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.

The table of sections for such part IX of the Internal Revenue Code of 1986 is amended by adding after the item relating to section 280H the following new item:

The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act, in taxable years ending after such date.