Sec. 405. Disallowance of deduction for advertising for prescription drugs
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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: No deduction shall be allowed under this chapter for expenses relating to direct-to-consumer advertising of prescription drugs for any taxable year. For purposes of this section, the term direct-to-consumer advertising means any dissemination, by or on behalf of a sponsor of a prescription drug product (as such term is defined in section 735(3) of the Federal Food, Drug, and Cosmetic Act), of an advertisement which— is in regard to such prescription drug product, and primarily targeted to the general public, including through— publication in journals, magazines, other periodicals, and newspapers, broadcasting through media such as radio, television, telephone communication systems, direct mail, and billboards, dissemination on the internet (including social media), and manufacturer patient assistance programs, as defined in section 399V–7 of the Public Health Service Act. .
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 direct-to-consumer advertising of prescription drugs. . The amendments made by subsections
(a)and
(b)shall apply to amounts paid or incurred after the date of the enactment of this Act, in taxable years ending after such date. The Secretary of Health and Human Services (referred to in this subsection as the Secretary ), acting through the Commissioner of Food and Drugs and in coordination with other Federal agencies, shall conduct oversight of the risks and benefits of drugs that are on the market and how such risks are presented in drug advertisements for the purpose of correcting false or misleading information published in direct-to-consumer advertisements and to disseminate corrective information to health care providers and the general public regarding the risks and benefits of a drug on an quarterly basis. The Secretary, acting through the Commissioner of Food and Drugs and in consultation with relevant stakeholders, shall issue new, or update current, guidance issued under section 503C of the Federal Food, Drug, and Cosmetic Act ( 21 U.S.C. 353c ). In carrying out this paragraph, the Secretary shall focus on drugs that present the greatest risk to consumers, drugs that represent the greatest proportion of total spending in Federal programs, drugs with high unit price increases over the preceding year, drugs with high launch prices, or any other priority drugs identified by the Secretary. There is authorized to be appropriated to the Secretary an amount equal to the increase in revenue resulting from the enactment of section 280I of the Internal Revenue Code of 1986, as added by subsection (a).
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Sec. 405
Disallowance of deduction for advertising for prescription drugs
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