Bill > S1785

This bill proposes to amend the Internal Revenue Code to disallow tax deductions for direct-to-consumer (DTC) advertising of prescription drugs and compounded drugs. Specifically, the bill defines direct-to-consumer advertising as any advertisement about a covered drug that is primarily targeted to the general public, including through broadcast media, direct mail, billboards, internet, social media, and digital platforms. The only exception to this rule is advertisements published in journals and periodicals. The bill applies to drug sponsors and owners of outsourcing facilities, covering both prescription drug products and drugs compounded under certain FDA regulations. Under this legislation, companies would no longer be able to claim tax deductions for expenses related to DTC advertising of these drugs, which would take effect for amounts paid or incurred after the date of the bill's enactment. The intent appears to be discouraging widespread pharmaceutical advertising to the general public by removing the financial incentive of tax deductions for such marketing expenses.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1785/all-info