Sec. 3. Denial of deduction for marketing directed at children to promote food of poor nutritional quality
607 words·~3 min read·
/bill/115/hr/7342/ih/section-3A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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 marketing directed at children for food of poor nutritional quality or brands primarily associated with food of poor nutritional quality, 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. 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 age 14 or under. The term directed at includes the use of measured media if the audience for such media will consist of 25 percent or more of children. For purposes of this section, the term marketing means all advertising and promotional techniques, including— advertising (including product placement) on television and radio, in print media, in social media, mobile media and apps, and on the Internet (including third-party and company-sponsored Websites), product packaging and labeling, 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 personal computers and other digital or mobile devices, advertising displays and promotions at the retail site, including preferential placement, specialty or premium items distributed in connection with the sale of a product or a product loyalty program, character licensing fees, toy cobranding and cross-promotions, sponsorship of events, celebrity endorsements, and in-school advertising including corporate-branded materials, corporate incentive programs, label redemption programs, fundraisers, signs, scoreboards, posters, vending machine fronts, in-school TV and radio, corporate sponsorships, and market research activities.
Not later than 24 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 , based on the National Academy of Medicine report described in such section 3(b), for purposes of this section. .
Not later than 60 days after the date of the enactment of this section, the Secretary of Treasury shall enter into a contract with the National Academy of Medicine to 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 National Academy of Medicine shall submit to the Secretary a report that establishes the proposed procedures described in paragraph (1).
The table of sections for part IX of subchapter B of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 280I. Denial of deduction for marketing directed at children to promote 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.