No Handouts for Drug Advertisements Act

This bill amends the Internal Revenue Code to deny tax deductions for advertising and promotional expenses related to direct-to-consumer advertising of certain drugs. Sec. 2, Disallowance of deduction for advertising and promotional expenses for certain drugs: This section adds a new tax code section 280I that prohibits any deduction for expenses related to direct-to-consumer advertising of covered drugs. Direct-to-consumer advertising is defined as dissemination of an advertisement about a covered drug primarily targeted to the general public, including through broadcasting (radio, TV, telephone), direct mail, billboards, and digital platforms (social media, mobile media, apps). It excludes advertisements in journals and other periodicals. Covered entities include sponsors of prescription drug products and owners of outsourcing facilities. Covered drugs include prescription drug products and drugs compounded under specific FDA sections. The amendments apply to amounts paid or incurred after the date of enactment, in taxable years ending after that date.