Sec. 3. Denial of deduction for advertising and marketing directed at children to promote the consumption of food of poor nutritional quality
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Part IX of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: No deduction shall be allowed under this chapter with respect to— any advertisement or marketing— primarily directed at children for purposes of promoting the consumption by children of any food of poor nutritional quality, or of a brand primarily associated with food of poor nutritional quality that is primarily directed at children, and any of the following which are incurred or provided primarily for purposes described in paragraph (1):
Travel expenses (including meals and lodging). Goods or services of a type generally considered to constitute entertainment, amusement, or recreation or the use of a facility in connection with providing such goods and services. Gifts. Other promotion expenses. Not later than 60 days after the date of the enactment of this section, the Secretary shall enter into a contract with the Institute of Medicine under which the Institute of Medicine shall develop procedures for the evaluation and identification of— food of poor nutritional quality, and brands that are primarily associated with food of poor nutritional quality.
Not later than 12 months after the date of the enactment of this section, the Institute of Medicine shall submit to the Secretary a report that establishes the proposed procedures described in paragraph (1). In this section: The term brand means a corporate or product name, a business image, or a mark, regardless of whether it may legally qualify as a trademark, used by a seller or manufacturer to identify goods or services and to distinguish them from the goods of a competitor.
The term child means an individual who is under the age of 14. The term food shall include beverages, candy, and chewing gum. The term marketing means any product or brand advertising or promotional techniques directed at children, including— advertising (including product placement) on television and radio, in print media, in social media, and on the Internet (including third-party and company-sponsored websites), the use of characters or mascots, themes, activities, incentives, or any other advertising or promotional techniques contained on the packaging or labeling of a product, advertising preceding a movie shown in a movie theater or placed on a video (DVD or VHS) or within a video game or mobile application, promotional content transmitted to televisions, personal computers, and other digital or mobile devices, advertising displays and promotions at the retail site or events, specialty or premium items distributed in connection with the sale of a product or a product loyalty program, character licensing, toy co-branding and cross-promotions, celebrity and athlete endorsements, and any advertising or promotional techniques used within a school.
Not later than 18 months after the date of the enactment of this section, the Secretary, in consultation with the Secretary of Health and Human Services and the Federal Trade Commission, shall promulgate such regulations as may be necessary to carry out the purposes of this section, including regulations defining the terms directed at children , food of poor nutritional quality , and brand primarily associated with food of poor nutritional quality for purposes of this section. .
The table of sections for such part IX is amended by adding at the end the following new item: Sec. 280I. Denial of deduction for advertising and marketing directed at children to promote the consumption of food of poor nutritional quality. . The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning 24 months after the date of the enactment of this Act.