Bill > S2035

This bill proposes to eliminate the tax deduction for direct-to-consumer (DTC) pharmaceutical marketing expenses for businesses in Massachusetts. Specifically, the bill amends an existing law by adding a new provision under the definition of "net income" that would disallow tax deductions for expenses related to advertising prescription drugs and devices directly to patients. This includes a wide range of marketing activities such as media advertising, coupons, outreach programs, and other marketing efforts targeting patients rather than healthcare professionals. For national or regional marketing campaigns, the disallowed deduction would be proportional to the share of expenses targeting Massachusetts residents. The bill references specific sections of the Internal Revenue Code (sections 162(a), 163, and 199) and builds upon provisions from the 2009 American Recovery and Reinvestment Act. By removing this tax deduction, the legislation aims to potentially discourage extensive direct-to-consumer pharmaceutical advertising and generate additional tax revenue for the state.

Budget and Finance

https://malegislature.gov/Bills/194/S2035