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: The bill adds a new section 280I to the tax code that prohibits any tax deduction for expenses related to direct-to-consumer advertising of covered drugs. Direct-to-consumer advertising is defined as any 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 apps, web apps). It does not include advertisements in journals or other periodicals. A covered entity is a prescription drug sponsor or an outsourcing facility owner. A covered drug is a prescription drug product or a drug compounded under specific FDA sections. The change applies to amounts paid or incurred after the bill's enactment date, in taxable years ending after that date.