Bill > HB484

This bill modifies Maryland's corporate income tax by adding back certain direct-to-consumer advertising expenses for "covered drugs" to a corporation's federal taxable income to determine its Maryland modified income. A "covered drug" is defined as a prescription drug product or a drug compounded according to specific federal regulations, and a "covered entity" is a sponsor of such a drug or a company that owns a compounding facility. "Direct-to-consumer advertising" includes advertisements for these drugs primarily targeted at the general public through various media like television, radio, mail, billboards, and digital platforms, but excludes advertisements in journals and periodicals. These advertising expenses, if deducted under Section 162 of the Internal Revenue Code, will now be added back for Maryland tax purposes. This change applies to all taxable years beginning after December 31, 2025.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0484?ys=2026RS