Bill > S1508

This bill proposes to eliminate the tax deduction for direct-to-consumer pharmaceutical marketing, meaning companies will no longer be able to deduct the costs of advertising prescription drugs and devices directly to patients in Massachusetts from their taxable income. This includes expenses for media advertising, coupons, outreach programs, and any other marketing aimed at individuals rather than licensed healthcare professionals. The bill amends Section 1 of Chapter 63 of the Massachusetts General Laws, which defines "net income" for tax purposes, by removing existing deductions and adding a new provision disallowing deductions for direct consumer advertising of prescription drugs and devices. For national or regional marketing campaigns, the disallowed deduction will be a proportional share of expenses attributed to Massachusetts residents. The "Code" referred to in the bill is the Internal Revenue Code, which governs federal tax law, and the bill is referencing specific sections of this code that allow for certain business deductions.