Bill · S. 1785· Senate(119-S-1785)
No Handouts for Drug Advertisements Act
- Introduced
- 5/15/2025
- Last activity
- 5/15/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Josh Hawley
- Cosponsors
- - 0 - 2
- Introduced
- In Committee
What this bill would do
The "No Handouts for Drug Advertisements Act" aims to amend the Internal Revenue Code of 1986. It seeks to deny tax deductions for expenses related to the direct-to-consumer advertising of certain drugs. This includes prescription drug products and drugs compounded in accordance with specific sections of the Federal Food, Drug, and Cosmetic Act. The ban applies to advertisements targeted at the general public through various media like radio, television, and the Internet. This change would apply to amounts paid or incurred after the Act is enacted.
Yes· 3 of 5
Does this give people more protection from unfair business practices?+3
Reducing drug advertising may decrease consumer susceptibility to pharmaceutical marketing.
Does this lower the price of prescription medicines?+2
The elimination of advertising deductions might indirectly reduce marketing costs passed to consumers.
Would households on low incomes be better off under this?+1
Potential reduction in drug prices may benefit low-income households.
The opposite
Would business owners be better off under this?-4
Pharmaceutical companies and outsourcing facility owners lose a significant tax deduction.
Does this raise the taxes companies pay?-3
The bill increases the effective tax burden on drug sponsors by denying them a deduction for advertising expenses.
Does this protect what people are allowed to say in public life?-2
Restricting advertising deductions could be seen as a restriction on corporate speech regarding products.
Who it would affect, and how
Potential Positive Impacts for People
- Tax Treatment of Drug Advertising: The bill prevents entities from deducting expenses for direct-to-consumer advertising of covered drugs (Section 2, subsection a). This effectively stops the ability to use tax deductions for these specific promotional costs.
Potential Negative Impacts for People
- Impact on Covered Entities: Sponsors of prescription drug products or owners of outsourcing facilities will no longer be allowed a deduction for the costs of advertising to the general public (Section 2, subsection a, clause b, subclause 3, part A).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+1Good For Business Owners-4
- Healthcare
- Reduces Prescription Drug Costs+2
- Social Issues And Justice
- Improves Freedom Of Speech-2
- Economy And Finance
- Improves Consumer Protection+3Reduces National Debt+1Increases Corporate Taxes-3
- Governance And Ideology
- Increases Federal Power+1
- 10/20/2025
- 1 Cosponsor added.
- 5/15/2025
- Read twice and referred to the Committee on Finance.
- 1 Cosponsor added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Jeanne ShaheenDemocrat · New Hampshire
Elissa SlotkinDemocrat · Michigan