Text: S.1763 — 111th Congress (2009-2010)All Information (Except Text)

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Introduced in Senate (10/08/2009)


111th CONGRESS
1st Session
S. 1763


To amend the Internal Revenue Code of 1986 to deny the deduction for advertising and promotional expenses for prescription pharmaceuticals.


IN THE SENATE OF THE UNITED STATES

October 8, 2009

Mr. Franken (for himself, Mr. Whitehouse, and Mr. Brown) introduced the following bill; which was read twice and referred to the Committee on Finance


A BILL

To amend the Internal Revenue Code of 1986 to deny the deduction for advertising and promotional expenses for prescription pharmaceuticals.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. Short title.

This Act may be cited as the “Protecting Americans from Drug Marketing Act”.

SEC. 2. Disallowance of deduction for advertising and promotional expenses for prescription pharmaceuticals.

(a) In general.—Part IX of subchapter B of chapter 1 of subtitle A of the Internal Revenue Code of 1986 (relating to items not deductible) is amended by adding at the end the following new section:

“SEC. 280I. Disallowance of deduction for prescription pharmaceuticals advertising and promotional expenses.

“(a) In general.—No deduction shall be allowed under this chapter for expenses relating to advertising or promoting the sale and use of prescription pharmaceuticals for any taxable year.

“(b) Advertising or promoting.—For purposes of this section, the term ‘advertising or promoting’ includes direct to consumer advertising in any media and any activity designed to promote the use of a prescription pharmaceutical directed to providers or others who may make decisions about the use of prescription pharmaceuticals (including the provision of product samples, free trials, and starter kits).”.

(b) Conforming amendment.—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:


“Sec. 280I. Disallowance of deduction for prescription pharmaceuticals advertising and promotional expenses.”.

(c) Effective date.—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.